New York, Jan 22, 2026, 07:35 EST — Premarket
- Arm shares climbed roughly 6% in premarket trading, fueled by a strong analyst call
- Susquehanna upgraded to Positive, maintaining its $150 target
- The next major milestone arrives with earnings on Feb. 4, scheduled after the market closes
Arm Holdings’ shares listed in the U.S. surged in premarket action Thursday following an upgrade from Susquehanna, which maintained its $150 price target on the chip-design company.
This shift is significant as Arm’s stock reacts sharply to new opinions on whether its expansion can reach beyond smartphones into data centers and AI chips, sectors where buyers usually shell out more per unit.
The focus tightens ahead of February. Arm is set to release quarterly results in less than two weeks, with guidance on server demand and pricing poised to move the stock more than any single rating update.
Susquehanna highlighted two “company-changing initiatives”: developing a custom AI accelerator chip and a bespoke server CPU. They also noted Arm’s move from its older v8 architecture to the newer v9 designs, which could drive higher royalties per chip. Investing.com UK
Arm doesn’t manufacture chips. Instead, it licenses its chip designs, charging customers an upfront fee and then collecting royalties—usually a few cents or dollars per chip—each time partners ship products featuring Arm’s technology.
Bulls see data center processors and AI systems as a path to bigger royalties, particularly when designs cramp in extra compute cores. The bear argument? These projects drag, and clients might shift course.
Arm is moving into new territory with robotics. Drew Henry, the leader of Arm’s Physical AI unit, told Reuters the tech has the potential to “fundamentally enhance labor, free up extra time.” Reuters
U.S. stock futures climbed early Thursday following President Donald Trump’s retreat from tariff threats related to Greenland. Investors prepared for key U.S. economic releases and Intel’s earnings report due later in the day.
That said, Arm’s upside isn’t without risks. A dip in phone or PC sales, or setbacks in rolling out higher-royalty models, could weigh on short-term results. Plus, volatile macro conditions tend to hit high-growth, richly valued stocks hardest.
Arm will release its fiscal third-quarter results Wednesday, Feb. 4, after the market closes, with a conference call set for 5 p.m. ET.
