Key Points
An analyst initiated coverage of the U.K.-based chipmaker.
He was quite bullish on its prospects.
10 stocks we like better than Arm Holdings ›
A glowing analyst note ignited a mini-rally in chipmaker Arm Holdings (NASDAQ: ARM) on Monday. Taking the bullish tone of the report to heart, many investors loaded up on the stock, pushing it to a nearly 2% price increase on the day. That was impressive when matched against the 0.3% slump of the bellwether S&P 500.
Getting stronger through diversity
Early that morning, Seaport Global Securities’ Jay Goldberg initiated coverage of Arm Holdings with an unambiguous buy recommendation, at a price target of $150 per share.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
Image source: Getty Images.
According to reports, Goldberg is convinced that Arm is creating significant value with its business. It has successfully pivoted from a mobile-focused company into one that is well diversified and drawing revenue streams from numerous sources.
The analyst pointed out that Arm is notably strong in a customer segment well poised for significant growth: data centers. These facilities are being fitted out to better serve the artificial intelligence (AI) functions that require far more computing power than preceding technologies.
Another aspect of the company’s business that Goldberg admires is its offerings for the automotive industry. While he noted that this market has a long development cycle, he wrote that Arm has already tripled the addressable market for products in the segment.
Life in the investor doghouse
The analyst’s timing is interesting because Arm hasn’t exactly been the flavor of the month for investors. At the start of August it published its results for the first quarter of fiscal 2026, which were met by disappointment despite a double-digit rise in revenue. Monday’s reaction to Goldberg’s bullish note might presage something of a revival in the shares.
Should you invest $1,000 in Arm Holdings right now?
Before you buy stock in Arm Holdings, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Arm Holdings wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $653,427!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,119,863!*
Now, it’s worth noting Stock Advisor’s total average return is 1,060% — a market-crushing outperformance compared to 182% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
See the 10 stocks »
*Stock Advisor returns as of August 11, 2025
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
