Susquehanna Sees Over $1B Annual Royalties From Arm’s (ARM) AI XPU

1 month ago 24

Sheryar Siddiq

Fri, January 30, 2026 astatine 8:10 AM CST 1 min read

Arm Holdings plc (NASDAQ:ARM) ranks among the most promising QQQ stocks according to hedge funds. Susquehanna raised Arm Holdings plc (NASDAQ:ARM) from Neutral to Positive connected January 21, with a $150 terms target. The steadfast noted 2 “company-changing initiatives” arsenic large triggers for the upgrade, including the accumulation of an AI XPU ASIC unneurotic with SoftBank and Broadcom for OpenAI, arsenic good arsenic a customized server CPU, perchance for Meta, which volition beryllium Arm’s archetypal afloat silicon product.

Although details connected the AI XPU are scant, Susquehanna believes the programme could yet gain much than $1 cardinal successful royalty gross each year, successful opposition to the $2.5 cardinal successful full institution royalties projected for this year.

Susquehanna expects a royalty default for 2026 models fixed memory-driven headwinds successful Mobile and PC markets, though it notes that specified obstacles are “well known”, contrasting the stock’s caller 40% driblet with efforts that mightiness boost maturation supra Arm’s existing “modest ~10% royalty contribution.”

Arm Holdings plc (NASDAQ:ARM) designs and licenses CPU architectures, strategy IP, and bundle utilized crossed automotive, computing, consumer, and IoT applications.

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Disclosure: None. This nonfiction is primitively published at Insider Monkey.