Wells Fargo cuts Arm Holdings PT on memory-driven demand risk

Wells Fargo cuts PT on Arm Holdings ARM.O to $160 from $195, still implying a ~38% upside to stock's last close

"While we remain positive on Arm-based server adoption in the data center as well as v9 / CSS adoption to drive sustained strong royalty revenue growth, we think street F2027 estimates are too high - reflecting 27% y/y growth in royalty revenue," Wells Fargo says

Says, rising risk that higher memory costs and supply constraints could curb demand for smartphones and PCs, with mobile devices accounting for 53% of royalty revenue, prompted brokerage to trim its estimates

Brokerage now expects royalty revenue to rise by about 17% y-o-y, down from a prior forecast of about 21%

24 of 40 brokerages covering the stock recommend a rating of "buy" or higher, twelve "hold" and four "sell" or lower; stock has a median PT of $157.5, according to data compiled by LSEG

ARM fell 11.4% in 2025