Key Stats for Arm Holdings Stock
- Price Change: +6.3%
- Current Price: $114
- Advanced Model Price Target: $315
The data predicts a 176% rally. Is it real? See the full ARM model on TIKR →
What Happened?
Shares of Arm Holdings (ARM) rallied 6.3% on Wednesday, closing at $114.
The surge was driven by a massive Tariff Relief Rally across the semiconductor sector.
President Trump announced a surprise pause on planned tariffs for European nations, reversing the panic selling that hammered peers like Nvidia (NVDA) earlier in the week.
Adding to the bullish momentum, analysts at Susquehanna upgraded the stock to “Positive”, citing strong AI adoption.
With the geopolitical threat temporarily removed, investors flooded back into high-growth AI plays.
See analysts’ growth forecasts and price targets for Arm Holdings stock (It’s free!) >>>
Is Arm Holdings Undervalued Today?
Beyond the macro headlines, Arm’s underlying business is delivering record-breaking numbers.
During the Q2 Earnings Call, CEO Rene Haas celebrated the company’s “best second quarter ever.”
He reported revenue of $1.14 billion, up 34.0% year-over-year.
Haas specifically highlighted that Arm’s Neoverse compute platform has now surpassed 1 billion CPUs deployed in data centers.
This dominance in AI infrastructure drove royalty revenue to a record $620 million, up 21.0% year-over-year.
According to TIKR’s Advanced Valuation Model, this growth trajectory implies massive upside.
- Advanced Model Price Target: $315
- Current Price: $114
- Potential Upside: +176.3%
The model assumes Arm can maintain a robust 24.4% revenue CAGR through 2031 as it capitalizes on the global AI buildout.
Conclusion: The tariff pause provided the spark, but Arm’s fundamentals are the fuel. With Neoverse dominating the data center and a valuation model pointing to $315, the stock looks primed for a long-term breakout.
How Much Upside Does Arm Holdings Stock Have From Here?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
