Deutsche Bank Aktiengesellschaft Issues Positive Forecast for ARM (NASDAQ:ARM) Stock Price

Key Points

• Deutsche Bank raised its price target on ARM from $125 to $140 while keeping a "hold" rating, and the sell‑side consensus remains a Moderate Buy with an average target of $166.78 (18 Buys, 7 Holds, 1 Sell).
• ARM launched its first in‑house AGI CPU for data centers with Meta as a launch customer and management projects multibillion‑dollar annual revenue (reports cite $15B–$25B by 2031), spurring analyst upgrades but introducing execution, capital intensity and competitive risks.
• ARM beat quarterly estimates (EPS $0.43 vs. $0.41) with revenue up 26.3% to $1.24B and the stock jumped ~16.4% to $157.04, although its valuation is high (P/E ~209.6), increasing sensitivity to any setbacks.

ARM (NASDAQ:ARM - Get Free Report) had its price objective upped by Deutsche Bank Aktiengesellschaft from $125.00 to $140.00 in a research note issued to investors on Wednesday,Benzinga reports. The brokerage presently has a "hold" rating on the stock. Deutsche Bank Aktiengesellschaft's target price suggests a potential downside of 10.85% from the company's previous close.

Several other research analysts have also commented on ARM. Mizuho reduced their price target on ARM from $190.00 to $160.00 and set an "outperform" rating on the stock in a report on Thursday, February 5th. Jefferies Financial Group set a $170.00 price target on ARM in a research note on Thursday, February 5th. TD Cowen reduced their price target on shares of ARM from $190.00 to $165.00 and set a "buy" rating on the stock in a research report on Thursday, February 5th. Rosenblatt Securities decreased their target price on ARM from $180.00 to $175.00 and set a "buy" rating for the company in a report on Thursday, February 5th. Finally, Evercore lowered their target price on ARM from $215.00 to $170.00 and set an "outperform" rating for the company in a research note on Thursday, February 5th. Eighteen research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, ARM currently has a consensus rating of "Moderate Buy" and an average price target of $166.78.

ARM Stock Up 16.4%

Shares of ARM stock traded up $22.08 during mid-day trading on Wednesday, hitting $157.04. 7,365,457 shares of the stock were exchanged, compared to its average volume of 6,174,495. The company has a market cap of $165.91 billion, a PE ratio of 209.60, a price-to-earnings-growth ratio of 9.45 and a beta of 4.11. The firm has a fifty day moving average of $119.67 and a 200 day moving average of $134.01. ARM has a 52-week low of $80.00 and a 52-week high of $183.16.

ARM (NASDAQ:ARM - Get Free Report) last announced its earnings results on Wednesday, February 4th. The company reported $0.43 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.41 by $0.02. ARM had a return on equity of 14.01% and a net margin of 17.15%.The firm had revenue of $1.24 billion for the quarter, compared to analyst estimates of $1.23 billion. During the same quarter last year, the firm posted $0.39 EPS. The business's revenue was up 26.3% on a year-over-year basis. ARM has set its Q4 2026 guidance at 0.540-0.620 EPS. Equities analysts predict that ARM will post 0.9 EPS for the current year.

Institutional Investors Weigh In On ARM

Several institutional investors have recently added to or reduced their stakes in ARM. Amundi boosted its holdings in shares of ARM by 24.8% in the first quarter. Amundi now owns 11,804 shares of the company's stock valued at $1,153,000 after acquiring an additional 2,345 shares during the period. Empowered Funds LLC raised its position in ARM by 28.8% in the 1st quarter. Empowered Funds LLC now owns 4,887 shares of the company's stock valued at $522,000 after purchasing an additional 1,094 shares during the last quarter. Schnieders Capital Management LLC. boosted its stake in ARM by 9.0% during the 2nd quarter. Schnieders Capital Management LLC. now owns 2,430 shares of the company's stock worth $393,000 after purchasing an additional 200 shares during the period. Geode Capital Management LLC boosted its stake in ARM by 3.0% during the 2nd quarter. Geode Capital Management LLC now owns 113,335 shares of the company's stock worth $18,331,000 after purchasing an additional 3,317 shares during the period. Finally, Legal & General Group Plc grew its position in ARM by 21.4% during the 2nd quarter. Legal & General Group Plc now owns 195,973 shares of the company's stock worth $31,692,000 after purchasing an additional 34,492 shares during the last quarter. Hedge funds and other institutional investors own 7.53% of the company's stock.

Key ARM News

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Arm launched its first in‑house AGI CPU for data centers and announced Meta as a launch customer — a major strategic shift from pure licensing that could open a new revenue stream. Business Wire: Arm Expands Compute Platform
• Positive Sentiment: Management projected multibillion‑dollar annual revenue from the new silicon business (reports cite figures in the $15B–$25B range by 2031), which drove strong investor enthusiasm. Reuters: Arm expects new AI chip to add billions
• Positive Sentiment: Analyst upgrades followed: Guggenheim raised its price target to $240 and gave a Buy, and Raymond James moved to Outperform with a $166 target — signaling bullish sell‑side sentiment. Benzinga: Analyst Upgrades
• Neutral Sentiment: Coverage highlights industry implications of Arm entering silicon (analysis pieces on how the move could reshape AI hardware markets); impact depends on execution and timelines. Proactive: Arm's chip gamble analysis
• Neutral Sentiment: Reported short‑interest data in some feeds shows strange/zero values and appears unreliable, so it’s not a useful near‑term signal.
• Negative Sentiment: Moving from IP licensing to selling silicon brings capital intensity, manufacturing/customer support and margin risk; investors may be discounting execution and competitive threats from Nvidia, Intel and AMD. Barron's: What Arm's chip means for Nvidia
• Negative Sentiment: High valuation (rich P/E and PEG) raises sensitivity to any execution hiccups or slower monetization, which likely contributes to today’s down move despite the positive headlines.

About ARM

Arm Limited NASDAQ: ARM is a global semiconductor IP company best known for designing energy-efficient processor architectures and related technologies that underpin a wide range of computing devices. Founded in 1990 as a joint venture between Acorn Computers, Apple and VLSI Technology and headquartered in Cambridge, England, Arm develops the ARM instruction set architectures and core processor designs that chipmakers license and integrate into custom system-on-chip (SoC) products. The company operates a licensing and royalty business model rather than manufacturing chips itself.

Arm's product portfolio includes CPU core families (such as Cortex and Neoverse lines), GPU and multimedia IP (Mali), neural processing units (Ethos) and a suite of system and physical IP blocks.

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