RBC Capital Arm

RBC Capital Raises Arm Holdings Price Target to $260

Analyst: Srini Pajjuri 1 min read Reproduced verbatim
Rating
Outperform
Target
$260
from $175 (+49%)
Outcome
Reached
on May 21, 2026
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What the analyst said

RBC Capital analyst Srini Pajjuri raised the price target on Arm Holdings (NASDAQ: ARM) to $260.00 (from $175.00) while maintaining an Outperform rating.

“ARM’s results and outlook were a bit better. DC royalties more than doubled and were partially offset by weaker Android volumes.

Management now has line of sight into $2b AGI CPU revenue in the next two years but is maintaining its prior guidance for $1b due to supply constraints.

Licensing is sustaining >20% growth for now and management believes Softbank contribution is durable.

Looking ahead, we see room for meaningful upside potential as supply situation eases and view ARM as an outsized beneficiary from AgenticAI-driven CPU growth.

In other markets, CSS transition remains a tailwind in smartphones while PhysicalAI is in very early stages.

We believe premium valuation is justified given 20%+ royalty growth, data center share gains, and large SAM.”

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This research note is reproduced verbatim from the issuing firm. Price Target never edits, paraphrases or alters analysts’ words — we only republish them in one place.

Where the price stands

ARM trades at $203. The 2 analysts who set a target in the last 3 months range from $320 to $641, with a median of $481. This $260 target is 46% below the median, the lowest on the Street.

Since the note ARM has moved −14% (from $237). 12-month window: day 179 of 365, closes on May 7, 2027.

Track record

This call✓ Target reached on May 21, 2026, 14 days after the note.

Firm track recordRBC Capital: 73% of its 11 targets at least a year old were reached within 12 months. Accuracy ranking →

Earnings reactionOne of 13 notes after Arm’s May 6 results: 13 raised · 0 cut · 0 kept. See every call →

RBC Capital on Arm

RBC Capital price targets on Arm

5 calls from January 14, 2026 to July 30, 2026. The target went from $140 to $340 (+143%). The rating stayed Buy.

RBC Capital targetARM share price
  1. July 30, 2026Target raised from $260 (+31%)Buy$340
  2. May 7, 2026 This noteTarget raised from $175 (+49%)Buy$260
  3. March 25, 2026Target raised from $130 (+35%)Buy$175
  4. February 5, 2026Target cut from $140 (−7%)Buy$130
  5. January 14, 2026Earliest call shownBuy$140
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Other analysts on Arm

StoneXHold Kept rating Oct 26 Piper SandlerBuy Initiated coverage Sep 10 $320 Raymond JamesBuy Raised price target +13%, kept rating Aug 25 $641from $565 RosenblattBuy Cut price target −7%, kept rating Jul 31 $250from $270 UBSBuy Cut price target −11%, kept rating Jul 30 $320from $360
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Price Target is an archive of Wall Street analyst research, published for informational purposes only. Nothing on this site is investment advice, a recommendation, or an offer to buy or sell any security. Analyst ratings and price targets are the opinions of the issuing firms, not of Price Target. Always do your own research or consult a licensed financial adviser.