TD Cowen Remains Bullish on Arm Holdings plc (ARM)

Arm Holdings plc (NASDAQ:ARM) is one of the best semiconductor stocks with the highest upside potential right now. TD Cowen lifted the price target on Arm Holdings plc (NASDAQ:ARM) to $265 from $165 on May 7, reiterating a Buy rating on the shares and stating that the company’s AGI CPU growth narrative got a boost on signs that initial interest doubled to $2B+. However, it also stated that despite that, supply constraints may be a hurdle to fully meeting the demand upside. The firm believes that AGI targets a $100B+ TAM and there’s scope for further silicon revenue upside from yet to be announced programs.

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The rating update came after Arm Holdings plc (NASDAQ:ARM) reported on May 6 results for fiscal Q4 and FY26 ended March 31, 2026. The company delivered record-breaking quarterly and full-year results, with fiscal Q4 revenue reaching $1.49 billion and full-year revenue at $4.92 billion. Fiscal year 2026 marked the company’s third consecutive financial year since going public, with more than 20% revenue growth.

Arm Holdings plc (NASDAQ:ARM) is involved in the licensing, research, marketing, and development of systems IP, microprocessors, graphics processing units, physical IP, and associated systems IP, software, and tools. The company’s operations are divided into the following geographical segments: the United Kingdom, the United States, and Other Countries.

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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