NEW YORK, May 29, 2026, 09:12 (EDT)
- Arm finished Thursday at $335.27, gaining 10.76%. The stock hit $349.42 during the session, its highest mark in a year.
- Vijay Rakesh at Mizuho Securities lifted his price target on Arm to $360 from $290, staying bullish on the stock.
- Nasdaq’s normal trading hadn’t started yet as of the dateline. The regular session is 9:30 a.m. to 4 p.m. Eastern. May 29 isn’t a 2026 U.S. equity market holiday, according to the exchange.
Arm Holdings’ U.S. shares move toward Friday’s Nasdaq trading after the chip designer soared 10.8% Thursday, hitting a new record as investors piled into AI server names again.
Arm is getting new attention as the market shifts from seeing it as just a smartphone-chip royalty play. Investors are putting more value on Arm’s position in CPUs, the main chips that do general computing. That’s as AI goes further than chatbots and powers “agentic” tools that don’t need as much human input.
Mizuho analyst Rakesh raised his price target on the stock to $360, according to published data. That’s roughly 7.4% above where shares finished Thursday and stands as the top target in a Wall Street survey.
Arm isn’t a chip maker for most products with its tech inside. The company licenses out its designs and gets royalties—payouts on every product with its architecture. Reuters has named Nvidia and Apple as customers. Arm’s energy-efficient designs have started to matter more as data centers deal with bigger power and heat loads from large AI models.
Arm CEO Rene Haas said earlier this month the company is “very bullish about this data center demand,” pointing to a bigger royalty haul from that business. Seaport Research Partners analyst Jay Goldberg sounded a note of caution following the numbers, saying expectations were “just so high.” Reuters
Chipmakers pushed global stocks to a fresh record Friday as Dell’s improved outlook kept AI optimism front and center. “Multiple confirmation points” are giving the AI rally new legs, Jason da Silva at Arbuthnot Latham told Reuters. Reuters
The competitive landscape is changing quickly. Reuters said Thursday that ByteDance is building its own CPUs to support AI, joining Google, Amazon, and Microsoft, which are all working on in-house chip projects. Intel and AMD still supply most of the CPUs, but Nvidia is also moving deeper into CPUs as it tries to protect its spot in AI chips.
Arm is positioned in the middle of the chip rivalry, but doesn’t look like Nvidia, AMD or Intel. Its designs end up inside customers’ chips. That lets Arm get a piece of growing CPU use, even as hyperscalers do more of their own silicon work.
Shares look stretched. Arm earlier flagged it doesn’t have supply lined up past the first $1 billion in demand for its new AI chip, while ongoing smartphone weakness is hurting royalties in a key market for its designs.
Valuation risk is back in focus after the latest rally. The stock now trades on promises of future AI revenue, before much of that revenue is on the books. If supply issues stick around, if AI server spending slows down, or if money moves out of pricey chip names, Thursday’s breakout could face another hard reversal.
