
ARM Stock Forecast & Price Target
ARM Analyst Ratings
Bulls say
Arm Holdings's stock is viewed positively due to the anticipated 20% compound annual growth rate (CAGR) in royalty revenue through fiscal year 2031, driven by strong adoption of ARMv9 and CSS technologies. The introduction of the ARM AGI CPU is projected to contribute significantly to revenue, with expectations of generating $1 billion by fiscal year-end 2027/2028 and potentially reaching $15 billion by fiscal year 2031. Furthermore, the rapid expansion of the Cloud AI market represents a substantial long-term opportunity, with total addressable market (TAM) growing from $330 billion in fiscal year 2026 to over $1.2 trillion by fiscal year 2031, further solidifying Arm Holdings's growth outlook in the data center segment.
Bears say
ARM Holdings is facing a negative outlook primarily due to a projected decline in design services revenue as a percentage of total revenue, which is expected to decrease from the current 13-14% alongside a lower growth rate for this segment. Concerns regarding a significant reliance on SoftBank for approximately 15% of sales, coupled with escalating operational expenses related to new chip initiatives, further exacerbate the stock's underperformance potential. Additionally, slower than anticipated adoption of ARM's products could lead to diminished royalty growth, raising further uncertainty about the company's financial stability.
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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