Needham Raises Arm Holdings Price Target to $255
Needham analyst Charles Shi raised the price target on Arm Holdings (NASDAQ: ARM) to $255.00 (from $200.00) while maintaining a Buy rating.
“Arm reported C1Q26 results slightly ahead of guidance mid-point on both revenue and non-GAAP EPS, with licensing revenue showing significant strength sequentially into the quarter.
C2Q26 guidance was slightly ahead of our/consensus estimates, with both licensing and royalties resuming growth (both +20% YoY).
Looking out further, FY27 (Mar’27) is expected at +20% YoY, with sequential growth expected each quarter.
In March of this year ARM revealed it is entering the CPU market, and it had received $2B of customer interest through FY28 (2x prior expectations).
At the moment, ARM is not committing to delivering the full $2B demand as the company is still working to secure CY27 foundry wafers.
Our CY27 estimates remain largely unchanged, but our PT is raised to $255 as we believe in the strong upside to the $1B CPU revenue forecast.”
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