Seaport Global Securities initiated coverage of Arm Holdings (NASDAQ:ARM) with a Buy rating and a $150 price target, citing the company’s expanding role across multiple markets.

The firm noted Arm’s diversification beyond mobile into data centers, where its technology is now present in about 50% of servers, as well as automotive applications. Analysts expect further penetration both in content per deployment and in market reach.

The company has tripled its addressable market and revamped licensing terms to attract smaller customers, countering competition from open-source RISC-V. Arm is also moving up the value chain by offering more complete chip designs, which could increase value capture despite potential channel conflicts.