
ARM Stock Forecast & Price Target
ARM Analyst Ratings
Bulls say
Arm Holdings has outlined a favorable growth trajectory for its core intellectual property (IP) business, anticipating a 20% compound annual growth rate (CAGR) in royalty revenue through fiscal year 2031, driven by the increasing adoption of its Armv9 architecture and custom computing systems (CSS). The company's strategic entry into the CPU market with its ARM AGI CPU, featuring 136 ARM Neoverse V3 cores and leveraging advanced 3nm technology, is projected to generate significant revenue, potentially adding $1 billion in the fiscal years ending 2027 and 2028, and escalating to $15 billion by fiscal year 2031. Furthermore, Arm positions itself strongly within the expanding cloud AI market, with a total addressable market projected to grow from $330 billion in fiscal year 2026 to over $1.2 trillion by fiscal year 2031, indicating robust opportunities for share gains in the data center segment.
Bears say
ARM Holdings faces a negative outlook primarily due to the anticipated decline in design services revenue as a percentage of total revenue, projected to fall from 13-14% as this segment grows at a high single-digit percentage rate. The company's dependency on SoftBank for approximately 15% of sales raises concerns about related-party contributions, and potential liquidity events or negative sentiment linked to SoftBank's assets may further depress ARM’s stock. Additionally, the risks associated with ARM's strategic shift to raise royalty rates and enter the chip design market could alienate existing customers, while any slower-than-expected adoption of its CPU products may jeopardize future royalty growth.
This aggregate rating is based on analysts' research of ARM Holdings PLC and is not a guaranteed prediction by Public.com or investment advice.
ARM Analyst Forecast & Price Prediction
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