Arm Gains Analyst Upgrades as Q4 Revenue Rises 20% to $1.49B
Major firms upgraded Arm to Buy at $306.38 and Outperform at a $300 target, reflecting strong confidence in its licensing model. Nvidia forecasts $20 billion in Vera CPU revenue from Arm’s designs, Arm’s fiscal Q4 revenue rose 20% to $1.49 billion, and its AGI CPU has over $2 billion in early commitments.
1. Analyst Upgrades
Arm attracted bullish ratings this week, with B. Riley upgrading to Buy at a $306.38 price point and Bernstein initiating coverage with an Outperform rating and a $300 target. These endorsements reflect confidence in Arm’s licensing model and long-term growth prospects.
2. Nvidia Partnership and Market Outlook
Nvidia projects $20 billion in revenue this year from its Vera CPU, which is licensed from Arm, and highlights a $200 billion addressable market for CPUs. This signals significant upside for Arm’s royalty streams as demand for AI-optimized chips expands.
3. AGI CPU Development and Demand
Arm is developing its proprietary AGI CPU, targeting $15 billion in annual revenue by fiscal 2031. Preliminary customer commitments for the new chip already exceed $2 billion for fiscal 2027 and 2028.
4. Fiscal Q4 Performance
In fiscal Q4, Arm reported revenue of $1.49 billion, up 20% year-over-year, driven by surging demand for power-efficient AI chips. This performance underscores the strength of its licensing business.