ORCL - Arm Holdings Has Significant Upside Potential With Arm Neoverse
2024-06-30 20:39:21 ET
Summary
- Arm Holdings has a significant opportunity as Neoverse is adopted across the hyperscalers to bolster data retrieval with lower power requirements.
- ARM anticipates significant growth opportunities beyond smartphone market with ARMv9 adoption with more content/chip and CSS chips.
- ARM CPU + Nvidia GPU may navigate hyperscalers away from the x86 for CPU, allowing for ARM to take on new market share.
Arm Holdings ( ARM ) is reaching a major paradigm shift in their target market as the firm further develops their CSS architecture. ARM has recently made a few major announcements involving the adoption of their ARM Neoverse across the hyperscalers, including Microsoft ( MSFT ), Oracle ( ORCL ), and Amazon ( AMZN ). As each of these firms further develop their high-performance processors to bolster the speed, reliability, and power reduction, I believe ARM will realize a significant growth opportunity that will take the firm well beyond their smartphone-entrenched market. I am upgrading my recommendation for ARM shares to a BUY rating with a price target of $213.78/share at 54.43x eFY26 price/sales....
Arm Holdings Has Significant Upside Potential With Arm Neoverse