Arm Holdings Plc: Multi-Year Framework Firms Up as ARM Cements Position as AI-Era Compute Platform; AGI CPU Revs Poised for >$1B Through FY28; DC Royalties More than Double Y/Y; Raising Ests and PT

Research evidence excerpt

Arm Holdings Plc: Multi-Year Framework Firms Up as ARM Cements Position as AI-Era Compute Platform; AGI CPU Revs Poised for >$1B Through FY28; DC Royalties More than Double Y/Y; Raising Ests and PT

J P M O R G A N North America Equity Research

30 July 2026

Arm Holdings Plc

Multi-Year Framework Firms Up as ARM Cements Overweight

Position as AI-Era Compute Platform; AGI CPU Revs ARM, ARM US

Poised for >$1B Through FY28; DC Royalties More Price (29 Jul 26):$224.89

than Double Y/Y; Raising Ests and PT ▲Price Target (Dec-27):$255.00 Prior (Dec-26):$240.00

ARM delivered a clean beat across the P&L, implying a modest raise to the full-

year FY27 outlook, and the AGI merchant silicon CPU narrative continues to firm Semiconductors & Semiconductor

Capital Equipment / IT Hardwareup just a few months after the Arm Everywhere event. Royalty revenue Y/Y growth

reaccelerated (+22% Y/Y) from FQ4’s v9-comp-pressured results, and licensing Harlan Sur AC

revenue (+23% Y/Y) delivered on continued strength in the deal pipeline. Key (1-415) 315-6700

harlan.sur@jpmorgan.com

commentary this quarter, in our view, came around the AGI CPU business, where

the revenue trajectory of the initial $1B FY27/FY28 framework was outlined (at Mayur Ramdhani

(1-212) 622-1664

least provisionally) as ~$100M in F4Q27 + ~$900M in FY28, where the gating mayur.ramdhani@jpmorgan.com

factor has decisively shifted from demand pull to supply availability, as customer

Apoorva Kumar

demand is now well in excess of $2B, but supply through the wafer/substrate/test (1-212) 270-0668

capacity/memory chain remains the binding constraint. In our view, upside to the apoorva.kumar@jpmorgan.com

initial $1B framework is likely to materialize and be formally announced with FQ3 J.P. Morgan Securities LLC