Why BofA Just Turned Neutral on Arm Holdings plc (ARM)

2 days ago 3

Rameen Kasana

Thu, January 15, 2026 astatine 7:15 AM CST 2 min read

Arm Holdings plc (NASDAQ:ARM) is among the most promising maturation stocks according to analysts. On January 13, Vivek Arya astatine BofA downgraded Arm Holdings plc (NASDAQ:ARM) to ‘Neutral’ from ‘Buy’ and maintained a $120 terms target, according to TheFly. The expert believes planetary smartphone units could witnesser a dip successful the debased azygous digits YoY owed to precocious representation costs and proviso issues, which volition adversely interaction ARM Client royalty sales.

Since Reuters announced that Arm Holdings plc (NASDAQ:ARM)’s restructuring to make a Physical AI portion to fortify its presumption successful the robotics space, the banal has declined by astir 3%. According to the connection by executives, the institution volition present run done 3 segments: Cloud and AI, Edge, and Physical AI.

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Earlier, connected December 16, 2025, BofA reduced the terms people connected Arm Holdings plc (NASDAQ:ARM) to $145 from $205 and maintained a ‘Buy’ standing connected the stock. Despite the steadfast being assured astir the smartphone and information halfway v9/CSS adoption and contented expansion, the enhanced SoftBank publication and dependence to execute its maturation outlook for the foreseeable aboriginal raises concerns. BofA besides notes the constricted visibility into the caller CPU chipset/silicon business.

Arm Holdings plc (NASDAQ:ARM) is simply a U.K.-based semiconductor and bundle plan institution that designs cardinal processing portion (CPU) products and associated technologies. Incorporated successful 1990, the institution offers its solutions to semiconductor companies and archetypal instrumentality manufacturers.

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