Mizuho Reiterates Outperform Rating on Arm Holdings
Mizuho analyst Vijay Rakesh reiterated an Outperform rating and $160.00 price target on Arm Holdings (NASDAQ: ARM).
“ARM hosted its “ARM Everywhere” event.
Key points: 1) announcing first silicon products, the ARM AGI CPU, built for agentic AI DC workloads with first committed customers META and OpenAI (+5 total) and first revs in F28E at ~$1B and growing >10x to $15B by F31E, almost 3X current ~$5B/yr run-rate, 2) AGI CPU launching in 2HC26E with $50B TAM today growing to >$100B by ~C30E, driving 2x better performance vs. x86 CPUs and potentially saving $10B of capex/GW, 3) ARM updated its financial targets with total revs in F31E guided to $25B with ~$10B IP revs up >2x from F26E’s ~$5B, and EPS >$9 up ~6x from F26E $1.75 consensus, and 4) KEY AI Accelerator potentially still AHEAD, ongoing with Softbank NRE $200M/qtr, expected to grow.
Reiterate ARM Outperform, $160 PT as we see Broadening CPU-ASIC roadmap addressing >$1.2Tr market.”
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