Arm Holdings shares surged on Thursday after a series of bullish analyst calls, and continued optimism around artificial intelligence infrastructure demand pushed the semiconductor architecture company to fresh record highs.
Arm stock climbed roughly 13.3% during trading to around $342, after touching an intraday all-time high of $349.42.
The rally extended the company’s remarkable momentum in 2026, with shares now up more than 210% year to date amid continued investor enthusiasm for AI-related technology stocks.
The latest move followed a price target increase from Mizuho, which raised its target on Arm shares to $360 from $290 while maintaining an Outperform rating.
Based on the stock’s prior closing price near $302.71, the new target implies roughly 19% additional upside.
Analysts see AI memory demand supporting Arm growth
Mizuho said its bullish outlook was tied to expectations that dynamic random access memory (DRAM) demand would remain strong through 2027, alongside continued expansion in the high-bandwidth memory market.
Both trends are viewed as supportive for Arm, whose energy-efficient chip architecture has become increasingly important across AI computing workloads and data center infrastructure.
The analyst momentum extended beyond Mizuho.
Bernstein also initiated coverage of Arm with an Outperform rating.
Analyst David Dai argued that the AI market is evolving beyond chatbot applications toward more advanced “agentic AI” systems, a shift that could favor Arm’s CPU designs.
Evercore additionally reiterated its Outperform rating after first-quarter 2026 market share data showed Arm gaining 140 basis points in server CPU unit share.
Strong earnings and AGI CPU demand remain key drivers
Investor enthusiasm has also been fueled by Arm’s recent financial performance and rising customer demand tied to AI infrastructure.
The company recently reported record fiscal fourth-quarter 2026 results, with revenue rising 20% year over year to $1.49 billion.
Licensing revenue climbed 29% during the quarter, highlighting continued demand for Arm’s semiconductor designs across cloud computing, mobile devices, and AI applications.
Chief Executive Rene Haas also disclosed that committed customer demand for Arm’s AGI CPU platform exceeded $2 billion across fiscal 2027 and 2028.
That figure more than doubled from levels disclosed only weeks earlier, reinforcing investor confidence that AI infrastructure spending remains strong.
Arm’s CPU technology has increasingly benefited from shifts in data center architecture as cloud providers and AI developers seek more energy-efficient processing solutions for increasingly complex workloads.
AI infrastructure boom continues reshaping semiconductor outlook
Wall Street analysts continue projecting substantial long-term growth for AI-related computing markets.
Citigroup estimates the global server CPU market could expand to approximately $132 billion by 2030, with agentic AI systems contributing significantly to that growth.
Wolfe Research separately forecasts that the CPU total addressable market could rise roughly 30% through 2028, driven by AI orchestration and inference workloads.
Those forecasts are viewed as favorable for Arm’s licensing-focused business model, which allows the company to benefit from broader adoption of its processor architecture without directly manufacturing chips.
The company’s growing momentum also reflects investor expectations that AI demand will increasingly extend beyond graphics processing units into broader computing infrastructure markets, including CPUs and memory technologies.
With record highs, expanding AI demand, and a series of fresh bullish analyst calls, Arm has emerged as one of the strongest-performing semiconductor stocks during the ongoing AI investment boom.
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