ARM Stock Rockets Higher As Nvidia’s New AI Platform Fuels Fresh Bull Case

• According to Nvidia, the first RTX Spark laptops, as well as desktop PCs from ASUS, Dell, HP, Lenovo, Microsoft Surface, and MSI, are expected during the fall season this year.
• Mizuho raised its target on ARM to $425 from $360, and kept an ‘Outperform’ rating on the stock.
• Barclays stated that CPU-to-GPU ratios are narrowing as CPU demand reaches new levels in the rapidly expanding world of agentic AI.

Shares of Arm Holdings (ARM) surged over 10% premarket on Monday after Nvidia, in collaboration with Microsoft, unveiled its RTX Spark platform, which is built on Arm architecture at its core. According to Nvidia, the first RTX Spark laptops, as well as desktop PCs from ASUS, Dell, HP, Lenovo, Microsoft Surface, and MSI, are expected this fall season. 

“This reinvention of the computer is as big of a deal as the reinvention of the phone into what we now know as the smartphone,” Jensen Haung said at the Computex event in Taiwan today,  indicating that agentic AI will be a part of all the new computers.

Additionally, a whole host of Wall Street analysts have raised price targets on the chip designer amid growing optimism around AI-driven CPU demand. Analysts say that the rise of agentic AI is creating a new wave of demand for server CPUs, a trend that could benefit Arm’s royalty-driven business for years to come. 

Nvidia’s AI PC Push Gives ARM Another Growth Catalyst

Every RTX Spark chip sold means royalty revenue for ARM. NVIDIA has already guided $20 billion in CPU revenue this year. 

In an earnings call, Nvidia also stated that the Vera CPU is a $200 billion total addressable market for the company, a market that the company never addressed before, and every major hyperscale and system maker has been partnering with Nvidia to get it deployed. Vera CPUs are also built on custom Arm cores that deliver faster performance, NVIDIA claims. 

ARM's licensing model is one of the main revenue engines. The company collects royalties on essentially every Arm-based chip shipped, and AI infrastructure spending is pushing more Arm cores into hyperscaler data centers and automotive platforms among other technology platforms. 

Wall Street Analysts Raise ARM’s Price Targets 

The NVIDIA news landed alongside a wave of analyst upgrades.

Mizuho raised its target on ARM to $425 from $360, and kept an ‘Outperform’ rating on the stock, according to TheFly.

The firm said agentic AI is driving strong demand across the CPU ecosystem, with suppliers facing supply constraints that stretch into 2027, indicates upside in servers. Mizuho warned that memory and CPU supply could potentially limit upside in the second half of 2026.

Meanwhile, Wells Fargo lifted its target on the company to $410 from $255, and maintained an ‘Overweight’ rating on the stock. After hosting its 4th Annual Silicon Valley Bus Tour, the firm reported "every one of those (meetings) having a positive demand tone, from AI data center build-outs to the proliferation of AI inferencing / Agentic AI driving significant incremental server CPU demand and continued drives of memory expansion." 

Wells Fargo noted memory constraints "appear very poised to continue through 2027" and that "economies-of-scale are a significant competitive advantage / lever."

Barclays also raised its target on ARM to $360 from $250, keeping ‘Overweight’ rating on the stock. Analyst Tom O'Malley said, "CPU-to-GPU ratios are narrowing as CPU demand reaches new levels in the rapidly expanding world of agentic AI." 

Barclays also highlighted AMD as "best positioned to benefit from this transition.”

What Retail Thinks About ARM

The retail sentiment surrounding the stock has improved to ‘bullish’ from ‘bearish’ while message volumes increased to ‘high’ from ‘normal’. Stocktwits data show that message volume has soared by over 700% in the last 24 hours.

Several retail traders expressed optimism and expect ARM stock to soar between $500 to $800 mark.

Arm Holdings shares have gained over 238% year-to-date.

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