What Wall Street Analysts Think of Arm Stock Ahead of Earnings

Key Findings

Arm Holdings is set to report fiscal second-quarter earnings after the close of trading on Wednesday.
Most analysts are bullish on the company, but the consensus price is slightly below Arm’s closing price on Monday.
Arm is projected to return to profit and deliver modest revenue growth.

Arm Holdings (HAND) is set to report fiscal second-quarter earnings after the market closes Wednesday, with analysts largely bullish on the chip company but expecting little upside in price.

Of the 12 analysts surveyed by Visible Alpha, nine have a “buy” or equivalent rating, compared with two maintaining a “hold” rating and one with a “sell” rating. Consensus target price is $138, less than a dollar above the stock’s closing price on Monday.

Put yourself in a good position to benefit from generative AI

Raymond James Analyst Srini Pajuri did a bull job for the company in September, setting a price target for Arm of $160 and calling it “a good opportunity to benefit from strong sales growth.” GenAI in the cloud and on the edge.”

Pajuri said edge AI (essentially using artificial intelligence on local devices) was a “key catalyst” for Arm’s Armv9 architecture, which powers the new Apple (AAPL) iPhone 16CPU.

On average, Wall Street expects Arm to report earnings of $93 million, or 8 cents per share, after a loss of $110 million, or 11 cents per share, a year earlier. Revenue is expected to grow less than 1% year over year to $811.6 million.