Arm Holdings plc (NASDAQ:ARM) is one of the Best Stocks to Buy for High Returns in 2026. On January 7, Reuters reported that Arm Holdings plc (NASDAQ:ARM) is reorganizing its business to expand its presence in the robotics industry by creating a new Physical AI unit.
According to the report, this decision comes at a time when companies of all scales and sizes demonstrated development around humanoid robots at the Las Vegas CES event. After the creation of this new unit, the company will operate through three main lines of business, including the Cloud and AI, Edge, and Physical AI units.
As per the report, management of Arm Holdings plc (NASDAQ:ARM) sees immense potential for growth in the robotics industry. The head of the newly formed Physical AI unit, Drew Henry, told Reuters that the advancements in robotics have the potential to enhance labor and free up extra time for humans. He believes that this would be a key contributing factor to boosting the GDP in the future.
That said, recently on January 5, Stephane Houri from Oddo BHF upgraded the stock from Hold to Buy with a $170 price target. Earlier on December 16, Vivek Arya from Bank of America Securities also reiterated a Buy rating on the stock, but lowered the price target from $205 to $145.
Arm Holdings (NASDAQ:ARM) architects, develops, and licenses central processing unit products and related technologies for semiconductor companies and original equipment manufacturers.
While we acknowledge the potential of ARM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
