JPMorgan has released a research report, giving it a "shareholding" rating with a target price of $140. Year-to-date, Arm's stock price has risen 84%. $Arm Holdings (ARM.US)$ Year-to-date, Arm's stock price has risen 84%.

Analysts Harlan Sur and Peter Peng from the bank stated that Arm seems to have ventured into all the right end markets, leading its team and investors to believe that the semiconductor company's revenue growth rate in the coming years will exceed 20%.

Arm produces key hardware for data centers, smart phones, PC clients, industrial, internet of things, and autos, focusing on accelerating computing and artificial intelligence.

Harlan Sur and Peter Peng stated: "All these favorable factors are reflected in the strong growth of renewal/additional license value and the future patent fee rate/penetration increase in all end markets."

The bank stated, "For example, in the cloud/datacenter market, the company's ARM CPU architecture has a high adoption rate on multiple AI/general server CPU platforms."

The bank estimates that Arm's share in the cloud/datacenter server market was 15% last year, reaching 20% this year, and will reach 50% by 2020.

Sur pointed out that our 'shareholding' rating is based on Arm's strong leadership position in semiconductor computing architecture, which allows it to effectively utilize the growing demand for high-performance computing capability while optimizing energy efficiency.