TLDR
- ARM stock hit a new all-time high of $239.51 before climbing further to $242.03, up over 104% year-to-date.
- Rosenblatt raised its price target to $270 and Jefferies to $290, both maintaining Buy ratings after strong Q4 earnings.
- Licensing revenue grew 29% year-over-year and royalties rose 11%, with quarterly revenue of $1.49 billion.
- Sanford C. Bernstein initiated coverage with an Outperform rating and a $300 price target, citing a “renaissance of CPUs.”
- Multiple law firms announced early-stage securities-fraud investigations tied to U.S. antitrust scrutiny of ARM’s licensing model.
Arm Holdings hit an all-time high of $239.51 on Tuesday before pushing further to $242.03, putting its year-to-date gain at over 104%. The stock has now more than doubled in 2026.
Arm Holdings plc American Depositary Shares, ARM
The move comes after a strong earnings report in early May. Licensing revenue jumped 29% year-over-year, and royalties climbed 11%. Quarterly revenue came in at $1.49 billion.
The results set off a wave of analyst upgrades. Rosenblatt raised its price target from $175 to $270. TD Cowen lifted its target from $165 to $265. Jefferies went further, moving from $210 to $290, citing expected growth in demand for AGI CPUs in the coming years.
Then came the biggest call of all. Sanford C. Bernstein initiated coverage with an Outperform rating and a $300 price target. The firm said ARM stands to benefit from what it calls a “renaissance of CPUs,” with the server CPU market potentially expanding sharply over the next several years.
Analyst Sentiment
Of 27 analysts currently covering the stock, 20 have a Buy rating, six have a Hold, and one has a Sell. The consensus price target sits at $203.79, though that figure is lagging well behind the most recent calls from bullish analysts.
Citigroup also projects strong growth in the server CPU market, estimating that agentic CPUs could reach $59.4 billion in value by 2030.
ARM’s market cap now stands at roughly $235 to $247 billion depending on the session, and the stock trades at a P/E ratio of around 253 to 265. InvestingPro flags the stock as overvalued relative to its Fair Value estimate.
Partners Group Holding AG disclosed a new position in ARM during Q4, picking up 7,300 units valued at approximately $798,000. Institutional investors now hold 7.53% of the stock.
Headwinds to Watch
Not everything is pointing up. Multiple law firms have announced early-stage securities-fraud investigations following reports of U.S. antitrust scrutiny of ARM’s licensing model. No formal charges have been filed, and the probes are described as preliminary.
ARM CEO Rene Haas sold 9,299 units on April 14th at an average price of $160.85 under a pre-arranged Rule 10b5-1 plan. Insider William Abbey also sold 7,000 units on May 15th at $212.55 for the same stated reason — to cover tax withholding on vested equity awards.
A separate report noted that AMD and ARM both gained server CPU unit share, while Intel’s share dropped from 59% to 55%, according to a market share report that Evercore referenced when reiterating Outperform ratings on all three names.
ARM and SoftBank Group made a preliminary approach to acquire Cerebras Systems ahead of its planned IPO. The offer was declined.
The stock’s 52-week range runs from $100.02 to $239.50, and its 50-day moving average stands at $168.98.
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