Arm Holdings plc (NASDAQ:ARM) ranks among the most promising QQQ stocks according to hedge funds. Susquehanna raised Arm Holdings plc (NASDAQ:ARM) from Neutral to Positive on January 21, with a $150 price target. The firm noted two “company-changing initiatives” as major triggers for the upgrade, including the production of an AI XPU ASIC together with SoftBank and Broadcom for OpenAI, as well as a custom server CPU, possibly for Meta, which will be Arm’s first full silicon product. Although details on t ...

Core Viewpoint - Arm Holdings' shares have seen an increase due to positive analyst commentary and a more attractive valuation following a slump at the end of 2025 [1][2] Group 1: Analyst Upgrades and Market Response - Susquehanna upgraded Arm's rating from neutral to positive, maintaining a price target of $150, citing a recent sell-off as a buying opportunity [4] - The stock rose by 14.1% in early Thursday afternoon following the news of the upgrade [2] Group 2: Product Developments and Revenue Streams - Arm is developing an AI XPU custom chip and a custom server CPU, which are expected to be key drivers for the company this year [4] - Nvidia-powered Windows on Arm computers are anticipated to launch this year, potentially creating a new revenue stream for Arm [4] Group 3: Competitive Position and Long-term Outlook - Arm's power-efficient CPU architecture provides a sustainable competitive advantage, supporting its high valuation [5] - The company is well-positioned to benefit from AI in the long term due to its royalty model, collecting royalties on products using its chip designs [5][6] - Although Arm's current revenue is relatively low compared to other chip stocks, its technology is expected to keep it at the forefront of the AI era and meet the growing demand for power-efficient chips [6]