AI agents boost CPU demand, but profit growth fails to support Arm (ARM.US) expensive valuation; Goldman Sachs reiterates "Sell" rating

According to Golden Ten Data, after Arm Holdings (ARM.US), the owner of the ARM instruction set architecture, released its earnings report and future outlook, Goldman Sachs issued a negative rating research report. This Wall Street financial giant maintained a "sell" rating on Arm Holdings and set a target price of only $160. The Goldman Sachs analyst team recognized Arm's strong growth opportunities in the AI CPU sector, which has a market scale of hundreds of billions of dollars, but questioned whether the additional revenue related to AI chips could offset the pressure on the royalty business and support the currently overly expensive valuation. With Goldman Sachs’ target price of $160, there is approximately 16.6% downside from the latest closing price of $191.80.