Evercore ISI Affirms Outperform on Arm Holdings, $372 Price Target

Evercore ISI analyst Mark Lipacis reiterated an Outperform rating on Arm Holdings (NASDAQ: ARM), with a $372 price target.

“We Remain Buyers of ARM, after it posted SepQ EPS that beat by 10% and provided and outlook for DecQ EPS that was 3% above.

We continue to see Arm as uniquely positioned to benefit from our CPU Renaissance thesis (here, here, here & here); not only from rising CPU:GPU attach rates which we anticipate raises the 2030 server CPU TAM to $275bn, but also from the continued deployments by customers of their homegrown ARM CPUs (Axion, Cobalt, Graviton, Vera, etc) and an emerging deployments of it’s in-house physical CPU.

With DC Royalties growing as a portion of mix (20%e for FY27) and AGI CPU revenues to generate $2bn for FY27/FY28, Arm benefits from idiosyncratic CPU growth in the DC.

While we expect continued late cycle derate we continue to view ARM as a key beneficiary of our “CPU Renaissance” thesis.

Our price target is $372, based on P/E ratio of 23x our 2030 base case EPS of $21.55, discounted back three years”

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.