Susquehanna Lifts Arm Holdings to $150 Target, BofA Cuts to $120
Arm shares are down 30% year-on-year but up 1.7% YTD after Susquehanna upgraded to Positive with a $150 target, citing Broadcom partnerships on AI projects for OpenAI and Meta. Bank of America cut its rating to Neutral with a $120 target, warning of revenue pressure from weak smartphone demand.
1. Analyst Upgrades and Downgrades
Susquehanna raised Arm’s rating to Positive and set a $150 price target, reflecting confidence in the company’s AI chip prospects. Bank of America lowered its rating to Neutral with a $120 target, citing the risk of revenue declines from weaker global smartphone shipments.
2. AI Partnerships Driving Outlook
Analysts highlighted Arm’s collaboration with Broadcom to develop an AI processor for OpenAI and a custom chip for Meta as key growth drivers. These partnerships are expected to create tailwinds by positioning Arm at the center of next-generation AI hardware deployments.
3. Cramer’s Softbank Observation
Jim Cramer noted that Softbank now owns 87% of Arm and serves as a major customer, questioning how this concentrated ownership might influence Arm’s strategic direction. His comments underscored market concerns that Softbank’s dual role as owner and customer could affect share liquidity and future corporate decisions.