Arm Holdings Plc (NASDAQ:ARM) shares have surged after HSBC upgraded the stock from Reduce to Buy rating and raised its price target to $205. The move comes as HSBC analyst Frank Lee more than doubled Arm’s price target, raising it from $90-to-$205. HSBC described Arm's AI opportunity as "game-changing" as a significant shift from a smartphone-centric licensing business to a supplier of CPU architecture for AI servers. Despite this, the firm stated that Arm remains undervalued by the market. Shares have risen 16.03% over the past 12 months and are currently positioned closer to their 52-week highs than lows within the $80.00 to $183.16 range.