
Seaport Global Securities has initiated coverage of Arm Holdings (NASDAQ: ARM) with a Buy rating and a $150 price target, highlighting the company’s growing influence across key tech sectors. Analysts point to Arm’s successful expansion beyond its stronghold in mobile devices, now making significant strides in data centers, automotive, and AI-driven markets. With its technology now powering roughly 50% of servers, Arm is solidifying its position as a critical player in high-performance computing.
The firm also emphasized Arm’s strategy to triple its addressable market by revamping licensing terms, making its designs more accessible to smaller customers. This move helps counter rising competition from open-source alternatives like RISC-V. Additionally, Arm is climbing the value chain by offering more complete chip designs, which could enhance profitability despite potential friction with existing partners.
Seaport Global’s optimistic outlook reflects confidence in Arm’s ability to increase market penetration while boosting revenue through higher-value solutions. As the company continues to diversify, its role in shaping next-gen computing, AI, and automotive innovation remains a key driver for long-term growth.
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