Arm stock hits record after analyst upgrades on AI demand

Arm shares climbed about 13.3% on Thursday to an intraday peak near $349.42 and settled near $342, after several analysts raised ratings and price targets amid increased demand for AI infrastructure. Year to date the stock is up more than 210%.

Mizuho raised its price target on Arm to $360 from $290 and kept an Outperform rating, implying roughly 19% upside from the stock’s prior close near $302.71. Bernstein initiated coverage with an Outperform rating. Evercore reiterated an Outperform view after first-quarter 2026 data showed Arm gained 140 basis points in server CPU unit share.

Analysts pointed to several industry trends as support for their outlooks. Mizuho cited expectations that DRAM demand will remain strong through 2027 and that the high-bandwidth memory market will expand, trends the firm views as supportive for Arm’s licensing business. Bernstein’s David Dai argued the AI market is moving beyond chatbot applications toward more advanced “agentic AI” systems, which he believes could favor Arm’s CPU designs. Citigroup estimated the global server CPU market could reach about $132 billion by 2030, while Wolfe Research projected the CPU total addressable market could grow roughly 30% through 2028.

Arm’s recent financial results and customer commitments align with the analyst commentary. The company reported fiscal fourth-quarter 2026 revenue of $1.49 billion, up 20% year over year, with licensing revenue rising 29% in the quarter. Chief Executive Rene Haas disclosed committed customer demand for Arm’s AGI CPU platform exceeded $2 billion across fiscal 2027 and 2028, a figure the company said more than doubled from levels reported weeks earlier.

Market participants have been tracking shifts in AI infrastructure spending, which has heavily favored GPUs but is drawing increasing investment in CPUs and memory to support orchestration, inference and other server workloads. Analysts note Arm’s licensing model lets the company benefit from broader adoption of its processor architecture without manufacturing chips directly.

Investors will watch Arm’s upcoming customer announcements, quarterly results and trends in memory and server markets for further signs of demand. For now, the stock reached record intraday levels following the analyst actions and company disclosures.