With significant interest in hedge funds, Arm Holdings Plc (NASDAQ:ARM) secures a spot on our list of The 11 Best AI Infrastructure Stocks to Buy Right Now.
Source: Pixabay On November 12, 2025, the fly reported that Loop Capital increased their price target on Arm Holdings Plc (NASDAQ:ARM) from $155 to $180, while reiterating a “Buy” rating. The investment firm’s bullish stance was due to the company’s quarterly progress reported in its fiscal second-quarter results. Additionally, on November 7, 2025, the fly reported that Morgan Stanley raised their price target on Arm Holdings Plc (NASDAQ:ARM) from $171 to $180, while maintaining an “overweight” rating. The company attributed its elevated target to the company’s second-quarter earnings and sales, which exceeded the high end of its guidance. Additionally, the investment firm highlighted the company’s growing role in the fast-paced AI ecosystem, evident by its higher operating expenses. Meanwhile, on Nov. 5, Arm Holdings Plc (NASDAQ:ARM) reported fiscal second-quarter 2025 results, highlighting record revenue of $1.14 billion, up 34% year-over-year. Meanwhile, non-GAAP EPS came in at $0.39, beating the midpoint of guidance. The company reported $620 million in royalty income with a growth of 21%. Thanks to strong demand for next-generation AI chips, licenses grew 56% to $515 million. The quarter also marked an increase in R&D spending, with operating expenses increasing 31% to $648 million, driven by new data center and chiplet projects. Looking ahead, Arm Holdings Plc’s (NASDAQ:ARM) partnership with Meta, announced during October, is expected to improve its AI efficiency, while the agreed acquisition of DreamBig Semiconductor is expected to expand its IP network footprint. Arm Holdings Plc (NASDAQ:ARM), which operates in the data center, smartphone and IoT markets, designs, develops and licenses CPU and semiconductor IP to global chipmakers and OEMs. While we recognize ARM’s potential as an investment, we believe certain AI stocks offer greater growth potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that’s also benefiting significantly from Trump-era tariffs and the offshoring trend, check out our free report on best short-term AI stock.READ NEXT: The 7 Best Oil and Gas Penny Stocks to Buy According to Analysts and Billionaire Jacob Rothschild’s RIT Capital Partners: 9 Stocks With Huge Growth Potential. Disclosure: None.