Arm Holdings plc (NASDAQ:ARM) is one of the best metaverse stocks to buy according to analysts. On March 4, Malaysia’s anti‑corruption agency announced it is investigating a 1.1 billion ringgit ($279 million) deal between the government and British chipmaker Arm Holdings. Officials are also reviewing a proposed takeover of IJM Corp by local conglomerate Sunway, according to agency chief Azam Baki. The probe involves allegations of corruption, fraud, and abuse of power.
So far, twelve people have been called to give statements, including a former minister and officials from the economy ministry and Malaysia’s investment agency. Authorities said they will continue summoning witnesses and promised a fair and professional investigation. The Arm deal, signed in March 2025, committed Malaysia to pay $250 million over ten years for chip design plans to support local manufacturers.
Earlier on February 24, BofA reiterated its optimism in Arm Holdings plc (NASDAQ:ARM) share price rallying by 20% to 25% by calendar year 2030. It is a significant upgrade from the research firm’s previous guidance that hinted at a 15 to 20% gain.
According to the research firm, the company is well-positioned to benefit from the launch of an in-house-designed merchant CPU, which would represent a significant upgrade from its historical IP licensing and royalty-based model. Consequently, the company’s target market could be 30 times larger at $50 to $100 per chip, versus $1500 to $2000 per chip for silicon.
On acquiring 3% to 5% of the CPU share, ARM Holdings’ earnings could increase by 10% to 20% per share. Amid the expected growth, BofA has raised its price target of the stock to $140 from $135 while reiterating a Neutral rating. The price target hike comes on the heels of the company delivering robust fiscal third-quarter results, in which royalties and licensing revenues surpassed expectations.
Arm Holdings plc (NASDAQ:ARM) is a semiconductor and software design company that develops, licenses, and sells central processing unit (CPU) architectures and related technologies. It also plays a foundational role in the metaverse by providing high-performance, energy-efficient processor technology needed to power both user-facing “gateway” devices (VR/AR headsets, smartphones) and the underlying cloud/network infrastructure.
While we acknowledge the risk and potential of ARM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ARM and that has 10,000% upside potential, check out our report about this cheapest AI stock.
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