Arm Holdings shares climbed as much as 16.6% on Monday. Investor optimism regarding the company's role in the artificial intelligence sector drove the rally.
Piper Sandler initiated coverage with an Overweight rating and a $320 price target. The firm highlighted Arm's custom chip project for Meta and its expanding data center presence.
Raymond James increased its price target to $272. Analysts cited growth in server royalty revenues as a primary factor for the bullish outlook.
The gains occurred alongside a broader semiconductor rally. Accelerating demand for AI-powering chips continues to support the sector.