NEW YORK, May 28, 2026, 12:01 (EDT)
Arm Holdings stock surged in New York Thursday as another upbeat analyst note linked the British chip designer even more to Nvidia’s AI CPU push. Arm’s U.S. shares climbed 12.7% to $341.28 late in the morning, after reaching $345.49 earlier in the session.
AI hardware isn’t just a graphics chip story now. CPUs, or central processing units, are still key—they push data, keep accelerators moving, and handle coordination. Arm gets paid when its chip designs ship, through tech licenses and royalties. Reuters
Nvidia is making its CPU story harder to miss. The company posted a record first-quarter revenue of $81.6 billion, with data-center revenue up to $75.2 billion. Nvidia also talked up its Vera CPU for agentic AI—AI that acts more independently. Reuters said Vera aims at a $200 billion CPU market and could bring in $20 billion in revenue this fiscal year. NVIDIA Investor Relations Reuters
Mizuho’s Vijay Rakesh bumped his price target on Arm up to $360 from $290, sticking with his Outperform call. Rakesh pointed to “tailwinds” as Arm moves to ramp its own CPU in 2027, mentioning customer chips like Grace, Vera, Axion, Cobalt and Graviton. StreetInsider.com
Jefferies stuck to the same argument after Nvidia’s report. Analyst Janardan Menon kept a Buy on Arm with a $290 target, saying demand for Vera points to more demand for Arm’s AGI CPUs. He also called the company’s $15 billion AGI CPU revenue goal for 2031 “conservative,” TIKR reported. TIKR.com
Arm is pushing to go beyond royalties. Back in March, it rolled out its first production silicon, the Arm AGI CPU, and named Meta as its main partner. CEO Rene Haas said “agentic computing is accelerating” a shift in how computing is being built. Arm Newsroom
Arm posted record revenue of $4.92 billion for fiscal 2026, its company filing said, with royalties bringing in $2.61 billion and licensing revenue at $2.31 billion. Arm also reported in the filing that customer demand for the AGI CPU in fiscal 2027 and 2028 now tops $2 billion. That’s more than double what it said at launch. SEC
Nvidia is targeting Intel and AMD with its new Vera CPU, which goes up against x86 server chips still powering most data centers. Tom’s Hardware says early Linux benchmarks on the 88-core Vera put it close to AMD EPYC and Intel Xeon on selected tasks. Tom’s Hardware
But there are issues with the trade. Arm has said it still hasn’t locked in enough supply for all demand on its new AI chip. Early Vera benchmarks came only from Nvidia-selected tests, not a full range of open workloads. Reuters PC Gamer
Arm shares were already climbing fast ahead of Thursday’s action. On Sunday, The Motley Fool said the stock was up about 180% in 2026. Barchart later reported the stock had added about 48% in five sessions and was trading at high forward multiples. The Motley Fool Barchart.com
Investors seem content to view Arm as a kind of toll road as AI drives data-center expansion. The test will come when it’s time for Vera shipments, Arm’s own chips and new cloud deals to deliver the revenue analysts are banking on.
