BofA Downgrades Arm to Neutral, Lowers Price Target Ahead of Q3 Results
BofA has downgraded Arm's rating from Buy to Neutral and lowered its price target from $145 to $120 ahead of the company's Q3 FY 2026 results on February 4. The downgrade reflects concerns over smartphone market challenges, dependence on SoftBank for licensing, and limited exposure to the data center sector, which may lead to a revenue slowdown due to declining smartphone units and licensing revenues.
Theia Market Signal Identification - AI AssistedPublished Jan 14, 2026
BofA downgraded Arm's rating to Neutral from Buy and reduced the price target to $120 from $145 before Q3 FY 2026 results on Feb. 4. Key risks include smartphone headwinds, reliance on SoftBank for licensing, and limited data center exposure. Potential revenue slowdown may arise from lower smartphone units and licensing declines.
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