Loop Capital Raises PT on Arm Holdings (ARM) stock

Core Viewpoint - Arm Holdings plc (NASDAQ:ARM) is identified as a strong semiconductor stock with significant growth potential heading into 2026, supported by a recent price target increase from Loop Capital [1][2]. Financial Performance - In Q2 2026, Arm Holdings reported a revenue increase of 34% year-over-year, reaching $1.14 billion, with royalty revenue growing 21% year-over-year to a record $620 million [2]. - The company's non-GAAP EPS was $0.39, exceeding the midpoint of its guidance by $0.06, attributed to increased revenue and slightly lower operating expenses [3]. - The remaining performance obligations (RPO) rose by 1% quarter-over-quarter to $2,246 million, with expectations to recognize approximately 29% of RPO as revenue in the next 12 months [3]. Market Position and Strategy - Arm Holdings continues to gain traction in design wins across various end markets, including smartphones, data centers, automotive, and IoT, indicating strong momentum [1][2]. - The company focuses on architecting, developing, and licensing CPU products and associated technologies for semiconductor companies and OEMs [4].