Guggenheim Raises Arm Holdings Price Target to $240

Guggenheim analyst John DiFucci raised the price target on Arm Holdings (NASDAQ: ARM) to $240.00 (from $201.00) while maintaining a Buy rating.

“Key Message: ARM hosted its “Arm Everywhere” event, which marked the launch of the company’s first in house chip, the AGI CPU, extending ARM’s business beyond its traditional IP Licensing and CSS model.

In tandem with this announcement, the company initiated a $25B FY31 Revenue target ($10B for the traditional IP License/CSS business, and $15B for the new CPU business), which represents about 5x growth of implied FY26 revenue guidance.

ARM expects that this strategic move will also be accretive to gross profit, operating profit, and EPS.

Management expressed confidence that competition with some of their end customers is unlikely to materialize, and while there is logic in their viewpoint, we believe it is worth monitoring the potential for future conflicts to arise.

We’ve described ARM as one of three companies in our coverage universe that will likely see clear benefits from the advancement of AI technologies (the others being ORCL, and MSFT).

While we are confident in the company’s ability to execute, there is always risk in launching into new opportunities, especially something this transformational.

Therefore, we are taking a prudent approach to the newly issued long-term guidance, and will continue to monitor execution going forward. We remain Buy rated and raise our PT to $240 from $201.”

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