Mizuho Raises Arm Holdings (ARM) Price Target, Citing Strong Azure and AI Tailwinds

Arm Holdings plc (NASDAQ:ARM) ranks among the 20 best fast growth stocks to invest in. On July 2, Mizuho maintained its Outperform rating on Arm Holdings plc (NASDAQ:ARM) and raised its price target from $160 to $180. In contrast to consensus projections of $1.05 billion and $0.35 for the June quarter, the research firm maintained its revenue and EPS estimates at $1.07 billion and $0.35, respectively.

Mizuho Raises Arm Holdings Price Target, Citing Strong Azure and AI Tailwinds

With Azure penetration rising from 5–10% in 2024 to 15-20% in 2025 and potentially reaching roughly 33% in 2026, the firm sees Arm Holdings plc (NASDAQ:ARM) as a “major beneficiary” of Cobalt, which it predicts would expand 100% year over year in 2025.

Mizuho outlined some other growth drivers as well, including the potential benefits of an OpenAI/ARM AI processor for Softbank’s Project Stargate, a potential CPU relationship with META, and the availability of over 1,500 engineers for CPU/GPU/DPU development thanks to Softbank’s acquisitions of Graphcore and Ampere.

Arm Holdings plc (NASDAQ:ARM) is British software design and semiconductor company. The company provides microprocessors, graphics processing units, systems intellectual property (IPs), and other associated services.

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 this cheapest AI stock.

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