Arm’s AI-driven CPU revenue forecast raised to $18 billion by fiscal 2031, exceeding prior guidance of $15 billion.
Jefferies increased its price target for Arm Holdings PLC (NASDAQ:ARM) to $320 from $290, citing stronger demand for AI workloads driving CPU growth. The firm now projects Arm’s AI CPU revenue to reach $18 billion by fiscal 2031, up from the company’s $15 billion guidance.
Arm’s shares have surged nearly 150% this year, trading at $272 on Monday. Jefferies highlighted expanded opportunities from agentic AI applications and new customers like Oracle and ByteDance. The total addressable CPU market is now estimated at $200 billion by 2030, with Arm targeting a 15% share.
Revised forecasts for fiscal 2028 and 2029 AI CPU revenue stand at $1.5 billion and $3 billion, respectively, up from prior estimates. The firm noted potential gross margin pressure from higher-cost wafer supply to meet demand.