UBS Remains Bullish on Arm Holdings (ARM) – Here’s Why

Arm Holdings plc (NASDAQ:ARM) is one of the best stocks on the rise to invest in. UBS lifted the price target on Arm Holdings plc (NASDAQ:ARM) to $470 from $260 on June 24 and maintained a Buy rating on the shares.

The stock also received a rating update from Mizuho on June 4. The firm lifted the price target on Arm Holdings plc (NASDAQ:ARM) to $500 from $425, maintaining an Outperform rating on the shares. It told investors in a research note that the company's agentic AI tailwinds are accelerating as its platform expands with Oracle and ByteDance. The firm believes that Arm Holdings plc (NASDAQ:ARM) could pull in $15 billion in agentic AI infrastructure central processing unit revenue by fiscal 2031 and raised the company's estimates.

For reference, Arm Holdings plc's (NASDAQ:ARM) fiscal Q4 2026 quarterly earnings marked the company's highest quarterly revenue ever, with the third straight year of 20%+ revenue growth. Its revenue for the quarter reached $1.49 billion, while full-year revenue was $4.92 billion. The company also delivered record full-year royalty revenue of $2.61 billion alongside Q4 revenue at $671 million, driven by growth across Edge AI, smartphones, Physical AI, and Cloud AI, where data center royalties more than doubled year-over-year.

Arm Holdings plc (NASDAQ:ARM) is involved in the licensing, research, marketing, and development of systems IP, microprocessors, graphics processing units, physical IP, and associated systems IP, software, and tools. Its operations are divided into the following geographical segments: the United Kingdom, the United States, and Other Countries.

While we acknowledge the potential of ARM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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