Arm Holdings (ARM) Stays on Analyst Radar as AI Demand Fuels Fresh Price Target

Arm Holdings plc (NASDAQ:ARM) is one of the AI Stocks Analysts Are Tracking Closely. On July 21, Wells Fargo reiterated its rating on the stock as “Overweight” and raised its price target to $175 per share from $145.  The firm is confident about Arm’s potential to capitalize on the growing opportunities in the AI sector.

Although the firm is optimistic about Arm’s role in the emerging AI opportunity, it also remains cautious about Q1 2026 EPS due to the recent outperformance. It also remains focused on AI DC-driven 2026 royalty revenue upside.

According to recent data, Arm-based server CPU shipments grew 104% year-over-year in the first calendar quarter of 2025. Moreover, tariff uncertainty did lead to a lack of formal fiscal 2026 guidance, but Arm noted earlier that royalty revenue would grow in the high-teens to low-twenties percentage range year-over-year.

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The firm is of the view that there could be a modest increase in the upcoming earnings report scheduled for July 3. It also anticipates Arm to maintain above-target annual contract value and licensing revenue growth of an estimated 20% year-over-year. This will be backed by booming license demand tied to AI computing needs.

“While we remain positive on Arm’s LT positioning to benefit from emerging AI oppys & raise our PT to $175, we are cautious into F1Q26 EPS given recent outperf.”

Arm Holdings plc (NASDAQ:ARM) is a semiconductor and software design company that designs and manufactures semiconductor technology and other related products.

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