New Street Upgrades Arm Holdings (ARM) to Buy Following Strong Royalty Performance

Core Viewpoint - Arm Holdings (NASDAQ:ARM) is facing mixed analyst sentiments, with some upgrades and downgrades in price targets amid concerns over rising memory prices impacting smartphone sales volumes [1][2][3]. Group 1: Analyst Ratings and Price Targets - New Street analyst upgraded Arm Holdings to Buy from Neutral on February 5, citing strong royalty performance [1][7]. - Jefferies lowered its price target for Arm Holdings to $170 from $205 while maintaining a Buy rating, highlighting investor concerns about rising memory prices affecting smartphone sales [2]. - KeyBanc also reduced its price target for Arm Holdings to $170 from $200, keeping an Overweight rating, despite strong Q3 2025 results and raised Q4 guidance [3]. Group 2: Company Performance and Market Conditions - Arm Holdings reported strong results in royalties and licensing, exceeding expectations, but management indicated that rising memory prices and supply shortages could dampen handset royalty growth [3]. - The company specializes in designing and licensing CPU products and related technologies for semiconductor firms and original equipment manufacturers [4].