William Blair Reiterates Outperform on ARM, Citing Long-Term AI Tailwinds

Arm Holdings plc (NASDAQ:ARM) is one of the Trending AI Stocks on Wall Street. On December 12, William Blair analyst Sebastien Naji reiterated an “Outperform” rating on the stock, citing long-term growth drivers. Naji views structural tailwinds coming from v9 royalties, AI demand, and full-chip solutions.

With shares trading at a PE multiple of 68 times the firm’s calendar 2026 estimate, the firm continues to view ARM as a long-term winner in the semi space. It highlighted five specific growth catalysts for ARM.

The long-term semiconductor winner is supported by rising royalties from newer architecture, increasing data center share, AI-driven computing demand, expanded licensing, and a new product opportunity that could boost earnings.

“Stock Thoughts: Arm shares trade at a price-to-earnings multiple of 68 times our calendar 2026 estimate. We continue to see Arm as a long-term winner in the semi space, with multiple growth drivers including (1) the increase in royalty revenues with the shift to v9 and CSS, (2) share gains in the data center versus x86, (3) AI driving up global computing demand, (4) an expanded licensing opportunity as Arm shifts up the stack and builds full chip solutions, and (5) a new product opportunity that should be accretive to EPS.”

Arm Holdings plc (NASDAQ:ARM) is a semiconductor and software design company that designs and manufactures semiconductor technology and other related products.

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