Core Viewpoint - Arm Holdings plc is being closely monitored by analysts as a significant player in the AI sector, with a recent upgrade from Neutral to "Positive" by Susquehanna, maintaining a price target of $150, driven by strong growth prospects in AI silicon and server CPU expansion [1][6]. Group 1: Upgrade and Market Sentiment - Susquehanna's upgrade comes despite concerns over rising memory prices affecting the Mobile and PC markets, which previously led to competitor downgrades and pressure on ARM's share price [2]. - The firm perceives the recent sell-off as a buying opportunity, highlighting two major initiatives: the development of an AI XPI ASIC in collaboration with SoftBank and Broadcom for OpenAI, and a custom server CPU likely for Meta, marking a significant expansion in ARM's data center market [3]. Group 2: Growth Catalysts - Positive factors for ARM include the transition from v8 to v9 products, early volume ramp of high-royalty CSS-based applications, continued server CPU market share gains at hyperscalers, and increased royalty rates due to a doubling of core counts and adoption of DC CSS designs [4]. - Despite an anticipated royalty reset for 2026 models due to challenges in the Mobile and PC markets, Susquehanna believes these challenges are well understood and do not reflect the potential of upcoming growth catalysts [5]. Group 3: Investor Sentiment and Future Outlook - The current depressed investor sentiment and a recent ~40% correction in ARM's stock price contrast sharply with the expected growth from upcoming initiatives, which could enhance royalties beyond the current ~10% contribution [6].