Arm Holdings plc (NASDAQ:ARM) ranks among the best growth stocks to buy for the next 10 years. On July 21, Wells Fargo maintained its Overweight rating on Arm Holdings plc (NASDAQ:ARM) and increased its price target from $145 to $175. With recent statistics indicating Arm-based server CPU shipments rose 104% year-over-year in the first calendar quarter of 2025, the firm attributed ongoing momentum in artificial intelligence data centers as a major factor in Arm’s anticipated growth in royalty revenue in fiscal 2026.
Despite not releasing an official fiscal 2026 forecast owing to tariff uncertainties, Arm Holdings plc (NASDAQ:ARM) had previously predicted that royalty revenue would increase by a percentage range of the high teens to low twenties year-over-year.
Wells Fargo anticipates that Arm Holdings plc (NASDAQ:ARM) will continue to maintain an above-target annual contract value and licensing revenue growth at 20% year-over-year, owing to the growing demand for licenses related to AI computing requirements.
Arm Holdings plc (NASDAQ:ARM) is British software design and semiconductor company. The company provides microprocessors, graphics processing units, systems intellectual property (IPs), and other associated services.
While we acknowledge the potential of ARM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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