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Loop Capital Raises PT on Arm Holdings (ARM) to $180 Following Q2 Results

With significant hedge fund interest, Arm Holdings Plc (NASDAQ:ARM) secures a spot on our list of the 11 best AI infrastructure stocks to buy right now.

Source: Pixabay

On November 12, 2025, The Fly reported that Loop Capital increased its price target on Arm Holdings Plc (NASDAQ:ARM) from $155 to $180, while reiterating a “Buy” rating. The investment firm’s bullish stance stemmed from the company’s quarterly beat reported in its fiscal Q2 results.

Additionally, on November 7, 2025, The Fly reported that Morgan Stanley increased its price target on Arm Holdings Plc (NASDAQ:ARM) from $171 to $180, while maintaining an “Overweight” rating. The firm attributed its raised target to the company’s Q2 earnings and sales, both of which exceeded the upper end of its guidance. Furthermore, the investment firm highlighted the company’s expanding role in the accelerating AI ecosystem, evident from its increased operating expenses.

Meanwhile, on November 5, Arm Holdings Plc (NASDAQ:ARM) reported fiscal Q2 2025 results, noting record revenue of $1.14 billion, a year-over-year increase of 34%. Meanwhile, non-GAAP EPS came in at $0.39, surpassing the midpoint of guidance. The company reported $620 million in royalty revenue with a 21% growth. Thanks to strong demand for next-generation AI chips, licensing grew 56% to $515 million. The quarter also marked heightened R&D spending, growing operating expenses 31% to $648 million, driven by new chiplet and data center projects.

Looking ahead, Arm Holdings Plc (NASDAQ:ARM)’s partnership with Meta, announced during October, is expected to enhance its AI efficiency, while its agreed acquisition of DreamBig Semiconductor is expected to expand its networking IP footprint.

Operating across data center, smartphone, and IoT markets, Arm Holdings Plc (NASDAQ:ARM) designs, develops, and licenses CPU and semiconductor IP to global chipmakers and OEMs.

While we acknowledge the potential of ARM to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ARM and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 7 Best Oil and Gas Penny Stocks to Buy According to Analysts and Billionaire Jacob Rothschild’s RIT Capital Partners: 9 Stocks with Huge Upside Potential.

Disclosure: None.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

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