Arm Holdings (ARM) stock moved higher on Thursday as investors continued chasing AI-driven semiconductor momentum, with bullish analyst forecasts and growing optimism around Arm's expanding role in next-generation AI infrastructure supporting the stock's rally.

Analysts Continue Raising Bullish Forecasts

Arm attracted fresh attention after several Wall Street firms issued increasingly optimistic forecasts. The stock currently carries a Buy consensus rating, with forecast targets ranging from $120 at BofA Securities earlier this year to $360 at Mizuho on May 28.

Recent analyst actions included Mizuho raising its forecast to $360 with an Outperform rating, Bernstein initiating coverage with an Outperform rating and $300 target, and Barclays lifting its forecast to $250 while maintaining an Overweight rating.

AI Infrastructure and Agentic AI Fuel Demand Outlook

Bernstein analyst David Dai said the AI market is evolving beyond chatbot applications toward agentic AI systems. This shift could structurally benefit Arm because of its power-efficient CPU architecture. Arm CEO Rene Haas also highlighted rising CPU demand tied to AI infrastructure, noting that AI agents are increasing the importance of CPUs across cloud and data center environments.

Haas added that Arm's AGI CPU targets a data-center CPU opportunity exceeding $100 billion by 2030 and could reduce AI data-center capital spending by as much as $10 billion per gigawatt through stronger rack-level efficiency versus x86 systems.

Record Financial Results Reinforce Momentum

Arm's rally also followed record fourth-quarter fiscal 2026 results. The company reported revenue of $1.49 billion, up 20% year-over-year, while licensing revenue climbed 29% to $819 million, marking the strongest quarterly revenue performance in company history. Haas said committed customer demand for Arm's AGI CPU exceeded $2 billion across fiscal 2027 and 2028, more than doubling from levels disclosed just weeks earlier.

Supply Constraints Remain A Key Watch Point

Despite surging demand, Arm warned supply constraints could limit near-term AI growth. Haas said current manufacturing capacity can satisfy only about half of demand for Arm's AI-focused data-center CPUs, prompting the company to secure additional wafer, packaging, memory and testing capacity. CFO Jason Child said Arm still expects initial AGI CPU production revenue in the fiscal fourth quarter while maintaining long-term targets of $15 billion in AGI CPU revenue and $10 billion in IP revenue by fiscal 2031.

Technical Analysis

ARM is pressing the top of its 52-week range, sitting just below the $325 high, which keeps "breakout versus fade" risk elevated for anyone chasing strength at these levels. The trend is clearly up across timeframes, with the stock trading 41.3% above its 20-day SMA at $235.11 and 123.3% above its 200-day SMA at $148.82, a sign that the price is extended versus its longer-term mean.

Earnings & Analyst Outlook

Looking further out, the next major catalyst for the stock arrives with the July 29 (estimated) earnings report.

• EPS Estimate: 36 cents (Up from 35 cents year-over-year)
• Revenue Estimate: $1.27 billion (Up from $1.05 billion YoY)
• Valuation: P/E of 356.1x (Indicates premium valuation)

ARM Price Action

ARM Stock Price Activity: ARM Holdings shares were up 12.88% at $341.70 at the time of publication on Thursday, according to market data.