10 Best European Growth Stocks to Buy

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6. Arm Holdings plc (NASDAQ:ARM)

On May 13, 2026, Arm Holdings plc (NASDAQ:ARM) and majority owner SoftBank Group reportedly expressed preliminary interest in acquiring AI computing company Cerebras Systems ahead of its anticipated IPO, according to Bloomberg. The report said Cerebras declined the approach.

On May 7, 2026, Jefferies analyst Janardan Menon raised the firm’s price target on Arm Holdings plc (NASDAQ:ARM) to $290 from $210 while maintaining a Buy rating on the shares. Jefferies said demand expectations for Arm’s AGI CPU products in fiscal 2027 and 2028 have doubled since the company’s “Arm Everywhere” event in March. The firm added that demand could continue expanding as agentic AI adoption increases. Jefferies also noted that management appears confident in sustaining roughly 20% growth in both royalty and licensing revenue in fiscal 2027, while Arm’s market share is expected to continue increasing.

RBC Capital also raised the firm’s price target on Arm Holdings plc (NASDAQ:ARM) to $260 from $175 while maintaining an Outperform rating on the shares. RBC said the company’s fiscal Q4 results and outlook came in modestly ahead of expectations, supported by data center royalty revenue that more than doubled during the quarter, partially offset by softer Android-related volumes. The firm added that it sees meaningful upside potential as supply constraints ease and views Arm as a major beneficiary of agentic AI-driven CPU demand growth.

On May 6, 2026, Arm Holdings plc (NASDAQ:ARM) reported fiscal Q4 EPS of 60c, ahead of the consensus estimate of 58c. Revenue totaled $1.49B, compared to the consensus estimate of $1.47B.

Arm Holdings plc (NASDAQ:ARM) develops and licenses CPU architectures and semiconductor technologies used across smartphones, data centers, AI infrastructure, and other computing platforms globally.

While we acknowledge the potential of ARM to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ARM and that has 100x upside potential, check out our report about the cheapest AI stock.

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