Guggenheim Boosts Arm Holdings (ARM) Price Target—Here’s What’s Driving It

Arm Holdings plc (NASDAQ:ARM) is one of the 10 AI Stocks Making Waves on Wall Street.  On June 30, Guggenheim analyst John DiFucci raised the price target on the stock from $147.00 to $187.00, maintaining a “Buy” rating. The firm cited increased visibility in Arm’s license revenue for the rating affirmation, noting that it is anticipated to result in royalty revenue growth over the next several years.

According to analyst DiFucci, 2025 has seen software stocks moving with broad economic sentiment instead of company fundamentals. Even though security stocks outperformed software on the whole, their underlying growth has slowed except in areas such as Identity and Data security.

Guggenheim Boosts Arm Holdings (ARM) Price Target—Here’s What’s Driving It

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The firm further stated that even though some positive momentum exists, backed by retail trading and FX tailwinds, corporate IT demand is weak, which is why earnings may fall short. This is why the firm has raised the price target modestly, based on expected higher revenue growth.

While we acknowledge the potential of ARM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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