UBS Raises Arm Holdings Price Target to $245
UBS analyst Timothy Arcuri raised the price target on Arm Holdings (NASDAQ: ARM) to $245.00 (from $175.00) while maintaining a Buy rating.
“In response to a flood of investor questions about the impact of agentic AI on the server CPU TAM, we hosted a series of expert calls.
Our key conclusions are as follows: 1) the attach rate of CPUs to XPUs (GPU/TPU, etc..) should grow ~5x through C2030 versus last year’s baseline; 2) the largest slice of this growth will be within XPU racks (e.g. head nodes, the vast majority of which will be ARM-based); 3) there will also be net new demand for standalone CPU-only server racks (which we think will be split roughly 50/50 between x86 and ARM); 4) this should also ultimately spill over to catalyze PC demand – both greenfield and replacement cycle.
In aggregate, we estimate the server CPU TAM could grow ~5x through C2030 from ~$30B in C2025 to ~$170B in C2030.
This would translate to across the board upside for ARM/INTC/AMD, though we believe the ARM instruction set will capture a disproportionate segment of this growth and reach ~40- 45% share of total units by C2030E (vs 15% in C2025). ”
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