Jefferies raises Arm Holdings price target to $320 on strong AI-driven CPU demand outlook

Jefferies has increased its price target for Arm Holdings to $320 from $290, citing stronger demand for AI-related CPUs after the company's fiscal 2026 results. The firm expects Arm's AI CPU revenue to reach $18 billion by fiscal 2031, surpassing the company's own guidance of $15 billion, driven by new customers like Oracle and ByteDance and growing AI applications. Jefferies also forecasts revenue growth above 40% annually through 2031 and highlights potential expansion in data center royalties and AI accelerators. This outlook supports Arm's potential to outperform the broader semiconductor sector.