Arm Holdings plc (ARM), currently trading at $159.55 per share, has experienced significant growth, driven by its energy-efficient chip designs that dominate the mobile phone market and its strategic involvement in artificial intelligence (AI) infrastructure projects. The company's recent designation as a technology partner in a $500 billion AI infrastructure project has further boosted its market position. Analysts have set a 12-month average price target of $160.93, with estimates ranging from $100.00 to $180.00, indicating a cautiously optimistic outlook.

While Arm's strong partnerships with major tech firms like Microsoft and OpenAI enhance its prospects, ongoing legal disputes, such as the recent lawsuit with Qualcomm over licensing agreements, could pose challenges.

If Arm continues to capitalize on the growing demand for AI and maintains its leadership in chip design, the stock could appreciate to $180–$200 per share by the end of 2025. Conversely, setbacks in legal battles or failure to innovate may limit the stock's performance to the $140–$160 range.

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