Mizuho Raises Arm Holdings (ARM) Price Target, Citing Strong Azure and AI Tailwinds

Arm Holdings plc (NASDAQ:ARM) ranks among the 20 best fast growth stocks to invest in. On July 2, Mizuho maintained its Outperform rating on Arm Holdings plc (NASDAQ:ARM) and raised its price target from $160 to $180. In contrast to consensus projections of $1.05 billion and $0.35 for the June quarter, the research firm maintained its revenue and EPS estimates at $1.07 billion and $0.35, respectively.

With Azure penetration rising from 5–10% in 2024 to 15-20% in 2025 and potentially reaching roughly 33% in 2026, the firm sees Arm Holdings plc (NASDAQ:ARM) as a “major beneficiary” of Cobalt, which it predicts would expand 100% year over year in 2025.

Mizuho outlined some other growth drivers as well, including the potential benefits of an OpenAI/ARM AI processor for Softbank’s Project Stargate, a potential CPU relationship with META, and the availability of over 1,500 engineers for CPU/GPU/DPU development thanks to Softbank’s acquisitions of Graphcore and Ampere.

Arm Holdings plc (NASDAQ:ARM) is British software design and semiconductor company. The company provides microprocessors, graphics processing units, systems intellectual property (IPs), and other associated services.

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