BofA Raises PT on Arm Holdings plc (ARM), Keeps a Hold Rating

Arm Holdings plc (NASDAQ:ARM) is one of the Best IT Stocks to Buy According to Wall Street Analysts. On February 27, Vivek Arya from Bank of America Securities raised the firm’s price target on Arm Holdings plc (NASDAQ:ARM) from $135 to $140, while maintaining a Hold rating.

The analyst said in a research note that the bullish outlook is based on the company’s strong positioning in the AI-driven CPU market. He emphasized that Arm Holdings has the potential to capture significant market share as the market shifts towards AI interference workloads.

Arya noted that AI inference is “control-heavy” and demands more CPUs as AI is transitioning away from just training to inference. This positions the company favorably as data-center workloads evolve. The analyst also highlighted in his note that the CPUs are projected to hold a steady 4% to 5% of the $1.4 trillion AI data center total addressable market .

Moreover, BofA forecasts the server CPU total addressable market will double from $27 billion in 2025 to $60 billion by 2030, at a 17% CAGR. Out of this, 70% growth is expected to originate from AI servers. This growth supports Arm’s path to more than 20% – 25% market share by 2030, up from a prior 15% – 20% estimates.

​Arm Holdings (NASDAQ:ARM) architects, develops, and licenses central processing unit products and related technologies for semiconductor companies and original equipment manufacturers.

Disclosure: None.