Investing Club Increases Price Target on Arm Holdings to $250 After Stock Rally

The CNBC Investing Club announced an increase in its price target for Arm Holdings to $250 per share, up from $200, after the stock rallied more than 30% since the club initiated a position on Monday. The club also downgraded its rating on the stock to 2, advising to wait for weakness before adding to positions.

Arm Holdings designs and sells blueprints for central processing units (CPUs) and has begun developing its own CPU products.

AI Demand Stocks were on track for a positive close on Friday, positioning the S&P 500 for a fourth consecutive weekly gain. Chip stocks led discussions following Intel's quarterly results and comments on the CPU market. Graphics processing units from companies like Nvidia remain key to the AI boom, but the rise of agentic AI is shifting the balance toward more CPUs in AI clusters, according to statements from Intel.

Intel and AMD are prominent in data center CPUs, with Arm Holdings also participating in this sector.

next earnings report is scheduled for May 6. Rising demand for CPUs is expected to provide an advantage to Amazon and Alphabet through their in-house silicon developments, such as AWS Graviton and Google Axion, both based on Arm technology. Meta announced an agreement to deploy at least tens of millions of Graviton cores, which will generate royalties for Arm.

The upcoming week features earnings from about one-third of S&P 500 companies, including Alphabet, Amazon, Meta Platforms, Microsoft, and others. The Federal Reserve's policy meeting for April is also set for that week.