Morgan Stanley Trims Price Target on Arm Holdings (ARM) to $171, Keeps Overweight Rating

Core Viewpoint - Arm Holdings plc is recognized as a significant player in the AI stock market, with a positive long-term outlook despite a recent price target reduction by Morgan Stanley from $180 to $171, maintaining an Overweight rating on the shares [1][2]. Financial Performance - Morgan Stanley noted that while operating expenses have increased, income from royalties and licensing is expected to support Q2 earnings [2]. Investment Potential - The firm identifies an "attractive entry point" for investors based on Arm's long-term prospects in custom chip development and core business growth [3]. Market Position - Arm Holdings is a semiconductor and software design company that specializes in designing and manufacturing semiconductor technology and related products [3].