10 Best Semiconductor Stocks to Buy Heading into 2026

5. Arm Holdings plc (NASDAQ:ARM)

Number of Hedge Fund Holders: 37

Average Upside Potential: ~30.1%

Arm Holdings plc (NASDAQ:ARM) is one of the best Semiconductor Stocks to Buy Heading into 2026. On November 12, Loop Capital lifted the price target on the company’s stock to $180 from $155, while keeping a “Buy” rating as reported by The Fly. The firm believes that the company’s earnings report was solid. Furthermore, the analyst believes that Arm Holdings plc (NASDAQ:ARM) continues to see design win traction throughout its end markets.

In Q2 2026, the company saw its revenue grow by 34% YoY to $1.14 billion, with royalty revenue increasing 21% YoY to a record of $620 million. Furthermore, its royalty revenue growth stemmed from all the target end markets, which include smartphones, data center, automotive, and IoT, showcasing its momentum.

Arm Holdings plc (NASDAQ:ARM)’s non-GAAP EPS came in at $0.39, $0.06 above the midpoint of its guidance range, thanks to the increased revenue and slightly lower OpEx. Its RPO rose 1% QoQ to $2,246 million, and Arm Holdings plc (NASDAQ:ARM) anticipates recognizing ~29% of RPO as revenue over the upcoming 12 months, 16% over the subsequent 13 to 24 months, and the remainder thereafter.

Arm Holdings plc (NASDAQ:ARM) architects, develops, and licenses central processing unit products as well as associated technologies for semiconductor companies and OEMs.