Key Takeaways
- Arm Holdings has been added to the PHLX Semiconductor Sector Index.
- Arm ADRs have jumped some 150% in just over a year as a publicly traded company.
- CEO Rene Haas said the decision by the index underscored his firm’s rapid growth.
High-flying Arm Holdings (ARM) on Friday announced that it has been added to the PHLX Semiconductor Sector Index (SOX), effective today.
American depositary receipts (ADRs) of the chip and software design firm have soared about 150% since it began trading on the Nasdaq last September, fueled by demand for artificial intelligence (AI) products.
Chief Executive Officer (CEO) Rene Haas said that in just one year as a public company, “Arm has continuously reinforced its position as the foundational compute platform across every technology touchpoint.” Haas added that being added to the SOX index “underscores the rapid growth our company has seen as we continue to diversify our solutions and scale across multiple markets.”
Analysts Bullish on Arm
Last week, Morgan Stanley made Arm “Our New Top Pick,” with the analysts calling it “an important part to the shift in edge AI,” which is the use of AI data closer to its source, rather than centrally located in a cloud computing facility or data center.” They pointed out how Arm’s architecture was being used in the Apple’s (AAPL) A18 processor inside the new iPhone 16.
Also last week, Raymond James analyst Srini Pajjuri initiated coverage on Arm with an “overweight” rating and price target of $160. Pajjuri also mentioned the importance of Arm’s connection to the iPhone 16, and added that the company was “well-positioned to benefit from rapid growth of GenAI in the cloud and at the edge.”
Arm ADRs slipped 1% to $138.41 in late-afternoon trading Friday but are up about 85% this year.