Arm Holdings (ARM) soared 13% on Wednesday after Mizuho raised its price target to $360 from $290, maintaining an Outperform rating. The stock hit an intraday high of $345.60, approaching its all-time peak of $349.11, and is now up over 210% year to date in 2026.
Mizuho’s upgrade was driven by expectations of strong DRAM demand through 2027 and a growing total addressable market for high-bandwidth memory. In addition, Bernstein initiated coverage with an Outperform rating, citing the shift toward agentic AI systems that favor Arm’s energy-efficient CPU designs. Evercore also reaffirmed its Outperform rating after Q1 market-share data showed Arm gaining 140 basis points in server CPU unit share.
The rally follows record fiscal Q4 2026 results, with revenue rising 20% year over year to $1.49 billion. Licensing revenue jumped 29%, and Chief Executive Rene Haas disclosed that committed customer demand for Arm’s AGI CPU platform now exceeds $2 billion across fiscal 2027 and 2028 — more than double the figure disclosed just weeks earlier.
Despite operational risks flagged by the company around production silicon and supply-chain management, the string of upgrades underscores Wall Street’s optimism that AI infrastructure spending will continue to benefit Arm’s licensing model. Citi projects the server CPU market could reach $132 billion by 2030, with agentic AI contributing significantly.
