Group 1 - Arm Holdings plc is gaining attention as a promising AI stock, with Raymond James initiating coverage and assigning a Market Perform rating due to its growth in the data center sector [1][2] - The company's business model focuses on licensing semiconductor intellectual property to fabless semiconductor customers, resulting in a high-margin business with a gross profit margin of 97.39% and annual revenue exceeding $4 billion [2][5] - Data centers currently represent about 20% of Arm's total sales, with significant partnerships with major tech companies like Amazon, Google, and Microsoft [3] Group 2 - Loop Capital has raised Arm Holdings' price target to $180 from $155, maintaining a Buy rating, following a 21% year-over-year increase in royalty revenue driven by growth in data centers, smartphones, and the Internet of Things [4] - Arm Holdings designs high-performance, power-efficient CPU architecture licenses used across various applications, including smartphones and data centers, without manufacturing chips itself [5]