TLDR
- ARM stock hit a new 52-week high of $427.99 on June 2, up 264% year-to-date
- CEO Rene Haas said Arm could reach its $15B chip sales target ahead of the end-of-decade goal
- Mizuho raised its price target to $500, citing Computex 2026 developments and AGI CPU expansion
- Q4 FY2026 revenue hit a record $1.49 billion, up 20.1% year-over-year
- Mizuho sees a potential AI ASIC launch in late 2026/early 2027 that could unlock a $1 trillion+ market
Arm Holdings (ARM) stock climbed to a new 52-week high of $427.99 on June 2 after CEO Rene Haas told investors the company could hit its $15 billion in-house chip sales target faster than planned. The stock was trading at $411.83 as of Wednesday, up 277% year-to-date.
Arm Holdings plc American Depositary Shares, ARM
Haas spoke on Tuesday, June 2, saying he remains “very confident” in reaching the $15 billion goal by the end of the decade. He added that current industry trends could push that timeline even earlier, pointing to the continued surge in AI infrastructure spending.
The stock has gained 209.1% over the past 52 weeks. In the last three months alone, it jumped 227%. Over just the past five trading sessions, ARM added another 31.49%.
At current levels, ARM trades at 185.81 times forward adjusted earnings and 72.09 times sales â well above industry averages.
Mizuho Lifts Price Target to $500
Mizuho raised its price target on ARM to $500 from $425 on Wednesday, keeping an Outperform rating. The firm pointed to developments from Computex 2026 in Taiwan as the main driver.
Mizuho said Arm is expanding its AGI CPU platform with Oracle and ByteDance, and that RTX Spark is enabling agentic AI at the edge.
The firm now estimates Arm could hit roughly $20 billion in AGI CPU revenue by fiscal 2031, up from the company’s own $15 billion target. Mizuho also flagged a potential AI ASIC product launch in late 2026 or early 2027.
That ASIC product, if it comes, could open a market exceeding $1 trillion â five to ten times the size of the CPU market â with an average selling price above $15,000. That’s a tenfold jump versus AGI CPU pricing.
Record Q4 and Strong Guidance
Arm reported Q4 FY2026 results on May 6 that set the highest quarterly revenue in company history. Revenue rose 20.1% year-over-year to $1.49 billion.
Licensing revenue climbed 29.2% to $819 million. Royalty revenue grew 10.5% to $671 million, with data center royalties more than doubling year-over-year.
Non-GAAP EPS came in at a record $0.60. Arm ended the quarter with $2.8 billion in cash.
For Q1 FY2027, Arm guided for revenue of $1.26 billion, plus or minus $50 million â roughly 20% growth year-over-year. Non-GAAP EPS guidance is $0.40, plus or minus $0.04.
Looking further out, Arm projects $15 billion in AGI CPU revenue and $10 billion in IP revenue by FY2031, totaling $25 billion in annual revenue.
Analysts expect Q1 FY2027 EPS to grow 12.5% year-over-year to $0.18. Full-year FY2027 EPS is forecast at $1.12, up 30.2%. FY2028 estimates sit at $1.99, implying 77.7% growth.
Wall Street rates ARM a “Moderate Buy.” Of 31 analysts, 20 have a Strong Buy, three have a Moderate Buy, seven are on Hold, and one has a Strong Sell. The Street-high target now sits at $500 following Mizuho’s upgrade.
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