Arm Holdings Surges 7% as BofA Raises CPU TAM to $170B and Price Target to $335
ARM•Arm Holdings gained almost 7% after Bank of America raised its 2030 server CPU TAM estimate to $170 billion and lifted Arm’s price target to $335 from $245. Analysts cited agentic AI infrastructure demand and expanded chiplet potential as the catalysts for the upgrades.
1. Analyst Upgrades and Price Target Hikes
Bank of America lifted Arm Holdings’ price target to $335 from $245, joining several other analysts in raising forecasts on the back of stronger long-term chiplet potential and a robust data-center CPU roadmap.
2. CPU Market Expansion
The 2030 server CPU total addressable market estimate was increased to $170 billion from $125 billion, reflecting a projected 37% CAGR driven by agentic AI workloads that require low-latency, sequential processing on CPUs alongside accelerators.
3. Stock Reaction
Shares of Arm Holdings rallied almost 7% in a single session as investors reacted to the upgraded forecasts, signaling confidence in the company’s positioning to capture a larger share of the expanding CPU and AI infrastructure markets.
