Mizuho Raises PT on Arm Holdings (ARM), Here’s What You Should Know

Arm Holdings plc (NASDAQ:ARM) is one of the Best Up and Coming AI Stocks to Buy Now. The company completed its IPO in 2023 with a market valuation of roughly $54.5 billion and was considered one of the largest IPOs of the year. Since then, the company has gone on to become a prominent AI company with a current market valuation of $366.276 billion.

Recently, on June 4, Mizuho raised the firm’s price target on Arm Holdings plc (NASDAQ:ARM) from $425 to $500 and maintained an Outperform rating on the shares. The firm noted that agentic AI tailwinds are accelerating for Arm, driven by expanding platform partnerships with Oracle and ByteDance. Moreover, Mizuho now believes Arm can generate as much as $15 billion in agentic AI infrastructure CPU revenue by fiscal year 2031. As a result, the firm updated its earnings estimates higher for the company.

​Moreover, the company posted strong results for fiscal Q4 2026 on May 7. During the quarter, the company posted revenue of $1.49 billion and adjusted EPS of $0.60, surpassing estimates of $1.47 billion and estimated EPS of $0.58. For the fiscal first quarter of 2027, management expects revenue of around $1.26 billion and adjusted EPS between $0.36 and $0.44.

​Arm Holdings plc (NASDAQ:ARM) is involved in the licensing, research, marketing, and development of system IP, microprocessors, graphics processing units, physical IP, and associated systems IP, software, and tools. The company’s operations are divided into the following geographical segments: the United Kingdom, the United States, and Other Countries.

While we acknowledge the risk and potential of ARM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than GFS and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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