ARM Holdings Plc (NASDAQ:ARM) shares are trading higher after Morgan Stanley analyst Lee Simpson upgraded the stock from Equal-Weight to Overweight and raised its price target from $107 to $190.

AI chip stocks led by Nvidia Corp (NASDAQ:NVDA), Advanced Micro Devices, Inc (NASDAQ:AMD) lost 9% and 18% this week.

At the Computex forum in Taipei, Arm CEO Rene Haas said he expects 100 billion Arm devices worldwide to be AI-ready by the end of 2025.

Arm Holdings plans to showcase its AI chip in 2025 and launch it commercially by fall 2025. Parent company Softbank Group Corp (OTC:SFTBF) (OTC:SFTBY) aims to invest significantly in data centers using its AI chips and renewable energy.

AMD CFO Jean Hu recently suggested a potential entry into next-generation AI PCs.

Analysts remain optimistic about Arm Holdings, citing strong licensing interest and royalty potential as essential growth factors. They also highlight Arm’s opportunities in the AI and data center sectors.

ARM Holdings has a consensus price target of $112.17 based on the ratings of 25 analysts.

ARM Price Action: Arm shares traded higher by 3.47% at $163.83 at the last check on Friday.

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