Arm Holdings’ March-quarter revenue of $1.49 billion surpassed estimates, prompting a revised price target with limited upside potential.
Bank of America raised its price target for Arm Holdings to $245 from $180 after the company reported stronger-than-expected March-quarter results. The new target reflects a 3.2% upside from the stock’s current price of $237.30 but maintains a Neutral rating due to valuation concerns.
Arm’s revenue reached $1.49 billion, exceeding Bank of America’s $1.47 billion estimate and Street expectations. Non-GAAP diluted EPS of 60 cents also topped forecasts of 58 cents. The results were driven by gains in AI and data center demand, offsetting near-term smartphone weakness.
The firm noted that Arm’s AI-related opportunities, including agentic AI CPUs, remain on track, though much of the potential may already be priced into the stock. The quarter reinforced long-term AI growth prospects, particularly in data center and AI computing.