Mizuho Raises Arm Holdings Price Target to $230

Mizuho analyst Vijay Rakesh raised the price target on Arm Holdings (NASDAQ: ARM) to $230.00 (from $160.00) while maintaining an Outperform rating.

“We take a deeper look post the “ARM Everywhere” recap as we see significant upside with: 1) ARM noting its new CPU could see 4-10x increase in CPU AI data center content with Agentic AI proliferation (OpenClaw, Claude, ChatGPT, Link), 2) we see ARM taking share from x86 with better TCO and 2X better perf., 3) we expect AI ASIC announcement in early-C27E and project conservative ~$12B revs (F31E) vs current GPU/ASIC TAM ~$400B growing to >$1T by F31E, and 4) our back-of-envelope estimates (Ex-2) point to $6.63 incremental F31E EPS from CPU/AI ASIC, while conservative SOTP (Ex-3) implies ~$291/share, ~97% upside.

Reiterate Outperform, raising our F28E EPS ~5% above cons, and PT to $230 from $160, ~1.6x our F28E PEG (prior 1.7x), with significant F31E upside as CPU/ASIC revs grow ~$37B (well above cons ~$17B), up 6X in 5Y.”

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