Future income growth is expected to exceed 20%, with JP Morgan giving Arm (ARM.US) a "buy" rating.

JPMorgan Chase released a research report, giving Arm Holdings (ARM.US) a "Buy" rating with a target price of $140. So far this year, Arm's stock price has already increased by 84%. Analysts Harlan Sur and Peter Peng from the bank stated that Arm seems to have entered all the right end markets, leading their team and investors to believe that the semiconductor company's revenue growth rate will exceed 20% in the coming years. Arm produces key hardware for data centers, smartphones, PC clients, industrial, Internet of Things, and automotive segments, focusing on accelerating computing and artificial intelligence. Harlan Sur and Peter Peng stated, "All of these favorable factors are reflected in the strong growth in renewal/additional licensing value and the increase in future patent fee rates/penetration rates across all end markets." The bank stated, "For example, in the cloud/data center market, the company's ARM CPU architecture is highly adopted in multiple AI/general server CPU platforms." The bank estimates that Arm had a 15% market share in the cloud/data center server market last year, reaching 20% this year and targeting 50% by 2020. Sur pointed out, "Our 'Buy' rating is based on Arm's strong leadership position in semiconductor computing architecture, which can effectively leverage the growing demand for high-performance computing capabilities while optimizing energy efficiency."