Key Stats for Arm Holdings Stock
- Price change for Arm Holdings stock: 3%
- $ARM Share Price as of May. 22: $307
- 52-Week High: $315
- $ARM Stock Price Target: $232
Now Live: Discover how much upside your favorite stocks could have using TIKR’s new Valuation Model (It’s free)>>>
What Happened?
Arm Holdings (ARM) stock jumped about 9% on Thursday and another 3% on Friday after Jefferies highlighted a major positive read-through from Nvidia’s latest earnings report.
- The core of the argument is straightforward. NVIDIA said it has visibility for $20 billion in standalone Vera CPU sales this year.
- Vera is Nvidia’s new chip, purpose-built for agentic AI, and it’s built on Arm’s CPU architecture.
- Every Vera CPU sold means royalty revenue for Arm.
Jefferies analyst Janardan Menon kept a Buy rating and $290 price target on Arm Holdings stock, saying the strong demand Nvidia is seeing for Vera should translate into similarly strong demand for Arm’s own AGI CPUs.
He went further, calling Arm’s own guidance of $15 billion in AGI CPU revenue by 2031 “conservative.”
That’s a meaningful statement. The analyst also noted that Nvidia sees the CPU market as a roughly $200 billion revenue opportunity — larger than what most had previously assumed.
See analysts’ growth forecasts and price targets for Arm Holdings stock (It’s free) >>>
What the Market Is Telling Us About Arm Holdings Stock
The bull case for Arm Holdings stock is becoming clearer with every passing quarter.
- The company just reported record full-year revenue of $4.92 billion, up 23% year-over-year — its third consecutive year of more than 20% growth since going public.
- Data center royalty revenue more than doubled year-over-year in fiscal 2026.
- Arm expects it to double again in fiscal 2027. And that growth is being driven by the same hyperscalers that are now increasingly relying on Arm-based chips: AWS, Google, Microsoft, and Nvidia.
- Arm estimates it already has around 50% CPU market share with the top hyperscalers.
CEO Rene Haas explained the demand driver simply: as AI shifts from single queries to continuous agentic workloads, CPUs need to coordinate tasks, manage memory, and orchestrate accelerators around the clock. He estimates data centers will need more than four times today’s CPU capacity by the end of the decade. That’s a structural tailwind, not a cyclical one.
The company launched its own Arm AGI CPU chip in March and already has over $2 billion in demand visibility for fiscal 2027 and 2028 — more than double what it projected at launch just six weeks earlier. First chip revenues are expected in Q4 of fiscal 2027.
Arm Holdings stock is not cheap at current valuations.
But the combination of surging royalty income, a new chip business coming online, and Nvidia’s validation of the CPU market opportunity is giving investors confidence the growth can sustain.
Estimate a company’s fair value instantly (Free with TIKR) >>>
How Much Upside Does Arm Holdings Stock Have From Here?
With TIKR’s new Valuation Model tool, you can estimate a stock’s potential share price in under a minute.
All it takes is three simple inputs:
- Revenue Growth
- Operating Margins
- Exit P/E Multiple
If you’re not sure what to enter, TIKR automatically fills in each input using analysts’ consensus estimates, giving you a quick, reliable starting point.
From there, TIKR calculates the potential share price and total returns under Bull, Base, and Bear scenarios so you can quickly see whether a stock looks undervalued or overvalued.
See a stock’s true value in under 60 seconds (Free with TIKR) >>>
Looking for New Opportunities?
- See what stocks billionaire investors are buying so you can follow the smart money.
- Analyze stocks in as little as 5 minutes with TIKR’s all-in-one, easy-to-use platform.
- The more rocks you overturn… the more opportunities you’ll uncover. Search 100K+ global stocks, global top investor holdings, and more with TIKR.
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!
