Arm Holdings shares fell on Monday after Bernstein started coverage on the newly public chip designer with an underperform rating, suggesting it may not be the beneficiary of artificial intelligence that some investors expect.
Bernstein is only the third firm to start coverage on Arm, and so far ratings are evenly distributed. Aside from Bernstein’s sell-equivalent rating, New Street Research recommends buying the stock while Needham has a hold rating. Needham analyst Charles Shi wrote that the valuation “looks full”.