Arm Stock Surges Over 10% After Nvidia RTX Spark Reveal, Target Raised to $425
ARM•ARM shares jumped over 10% premarket after Nvidia unveiled its RTX Spark AI platform built on Arm cores, with laptops and desktops expected this fall. Mizuho lifted its price target to $425 from $360, citing agentic AI driving server CPU demand.
1. Nvidia Unveils RTX Spark on Arm Architecture
Nvidia introduced its RTX Spark AI platform, built on Arm cores, at Computex. The platform targets AI-driven laptops and desktops, with models from major OEMs slated for release this fall, marking a strategic push into agentic AI devices.
2. Mizuho Raises Arm Price Target to $425
Mizuho upgraded its rating to Outperform and raised its price target from $360 to $425. The firm highlighted narrowing CPU-to-GPU ratios and forecast strong server CPU demand driven by agentic AI workloads.
3. Agentic AI Growth Fuels Royalties and Revenue
Arm’s royalty model stands to benefit from every RTX Spark and Vera CPU chip shipped. Nvidia projects $20 billion in CPU revenue this year and values its Vera CPU market at $200 billion, signaling long-term royalty upside for Arm.
