Update shared on 31 Oct 2025
Fair value Increased 1.23%Arm Holdings' analyst price target has increased modestly from $155.61 to $157.52. This reflects analysts' confidence in the company's expanding market presence and deepening value proposition within the semiconductor industry.
Analyst Commentary
Recent commentary from the Street indicates that analysts are primarily optimistic about Arm Holdings’ future prospects. Several coverage initiations and upward adjustments in price targets reinforce a constructive outlook on the stock.
Bullish Takeaways- Bullish analysts highlight Arm’s expanding penetration within the semiconductor market and expect the company to capture a larger share of value as it broadens its footprint.
- There is growing confidence in Arm's ability to deliver new content offerings, which is anticipated to deepen relationships with existing customers and enhance revenue streams.
- Valuation targets have been lifted in response to Arm’s strong execution and growth trajectory, reflecting positive sentiment on the company’s ability to scale operations effectively.
- Analysts note that Arm is well positioned to benefit from industry demand for energy-efficient, high-performance chip designs, which could support further growth across core and emerging markets.
What's in the News
- OpenAI is collaborating with Arm and Broadcom to develop an AI-focused CPU. TSMC is set to manufacture the new chip (The Information).
- SoftBank is negotiating a $5 billion margin loan backed by Arm shares, seeking additional capital to invest in OpenAI. This will bring its total margin loans tied to Arm to $18.5 billion (Bloomberg).
- Qualcomm’s latest chips now include Arm's newest computing architecture. These feature enhancements intended to increase AI performance and position them as stronger competitors to MediaTek and Apple (Reuters).
- Arm recruited Rami Sinno, Amazon’s former AI chip director, to strengthen its chip development initiatives as it aims to build more comprehensive chip solutions (Reuters).
Valuation Changes
- Fair Value Estimate has risen slightly, increasing from $155.61 to $157.52 per share.
- Discount Rate edged higher from 10.78% to 10.83%, indicating modestly elevated risk assumptions.
- Consensus Revenue Growth projection remains effectively unchanged, shifting marginally from 21.56% to 21.56%.
- Net Profit Margin has slipped modestly, declining from 30.58% to 30.37%.
- Future P/E Ratio has increased slightly, moving from 101.18x to 103.28x projected earnings.
Disclaimer
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