HSBC downgraded Arm Holdings to Hold from Buy.
The bank suggests market enthusiasm for the company’s CPU narrative is overdone.
Current stock prices already reflect strong long-term growth expectations.
HSBC raised its price target for the stock to $315 from $235.
The bank rolled its valuation model forward to reach the new target.
Shares currently trade at 139 times estimated 2026 earnings.
Foundry capacity bottlenecks may limit near-term upside.