Arm Receives Higher Price Target from Jefferies on Stronger AI-Driven Demand Outlook
Jefferies raised its price target on Arm Holdings to $320 from $290, citing stronger AI-driven demand for CPUs. The analyst firm highlighted an expanded AI CPU opportunity following Arm's fiscal 2026 results, driven by agentic AI applications and new customers including Oracle and ByteDance. Jefferies now expects Arm's AI CPU revenue to reach $18 billion in fiscal 2031, above the company's guidance of $15 billion. The total addressable market for CPUs could reach $200 billion by 2030, with Arm expected to capture at least a 15% share. Meta is projected to become Arm's largest customer, followed by OpenAI, Oracle, and ByteDance. Jefferies also noted potential royalty opportunities from a future SoftBank AI accelerator using Arm's design services. The firm forecasts Arm's revenue and earnings to grow at over 40% annually through fiscal 2031, with a five-year EPS compound annual growth rate of 45%.
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