BofA Securities Raises Arm Holdings Price Target to $245

BofA Securities analyst Vivek Arya raised the price target on Arm Holdings (NASDAQ: ARM) to $245.00 (from $180.00) while maintaining a Neutral rating.

“ARM posted in-line/modestly better MarQ/JunQ, driven by continued share/content gains in AI/data center, offset by n-t smartphone weakness.

As the company outlined at its ‘Arm Everywhere’ event (see March 25 takeaway note), we believe ARM is well positioned to benefit from the rising demand for agentic CPUs, across both IP (key CSS products Axios/Cobalt ramping in FY27-28 and increasing content/core over time) and its new AGI chiplet CPUs.

However, supply remains limited, and mgmt maintained its near-term royalty and chip outlook unchanged despite much higher (~2x) demand.

Mgmt also reiterated its 15% CPU market share expectation for AGI chiplets by FY31, which we believe is ambitious (we model 5-7% share) given increasing competition and limited number of customers ARM can realistically cater to.

Those same few customers (Meta, OpenAI, etc.) also already have multi-sourcing CPU agreements, a headwind.

Overall, we modestly raise FY26-27E ests on rising CPU content outlook, but reiterate Neutral until we see more clarity in the AGI CPU’s share/traction.

Raise PO to $245 from $180, now on 69x CY28E PE (vs.

CY27E), in-line with initial AGI CPU ramp timing as the company transforms to a mixed IP/chip company, still in the middle of historical 35x-92x range.”

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