Arm Holdings (ARM) is expected to report its fiscal second-quarter results after the market close on Wednesday, with analysts mostly bullish on the chip design company but expecting little share price growth.

Of the 12 analysts surveyed by Visible Alpha, nine have a “buy” or equivalent rating, while two maintain their “hold” rating and one has a “sell.” The consensus price target is $138, less than a dollar above the stock's Monday close.

“Well positioned” to benefit from generative AI

Raymond James analyst Srini Pajjuri was bullish on the company in September, setting a $160 price target for Arm and calling it “well-positioned” to benefit from GenAI's rapid growth in the cloud and at the edge to benefit.

Pajjuri said that edge AI – essentially the deployment of AI on local devices – is “a key catalyst” for Arm's Armv9 architecture, which is used in the processor of the new Apple (AAPL) iPhone 16.

On average, Wall Street expects Arm to post a profit of $93 million, or 8 cents per share, after a loss of $110 million, or 11 cents per share, a year earlier. Revenue is expected to rise less than 1% year over year to $811.6 million.