Bank of America resets Arm stock forecast after earnings
Key takeaways
- In the Bank of America note, analyst Vivek Arya reiterated a Neutral rating on Arm and raised the firm’s price objective to $245 from $180.
- Arm’s latest quarter gave investors more support for the long-term AI story, especially as demand for data center and AI-related computing continues to rise.
- Bank of America said Arm’s March quarter was in line with modestly better than expected, driven by continued share and content gains in AI and data center, partly offset by near-term smartphone weakness.
Bank of America resets Arm stock forecast after earnings Tyler Bundy Sat, May 9, 2026 at 12:47 AM GMT+7 5 min read ARM BAC Bank of America raised its price objective on Arm Holdings after the chip-design company posted a stronger March quarter, but the firm stopped short of turning more bullish on the stock as investors continue to price in a larger artificial-intelligence opportunity.
In the Bank of America note, analyst Vivek Arya reiterated a Neutral rating on Arm and raised the firm’s price objective to $245 from $180. The new target implies about 3.2% upside from the stock’s listed price of $237.30 in the note. Bank of America said Arm’s agentic AI CPU opportunity in both intellectual property and chiplets remains on track, though much of that opportunity may already be reflected in the company’s valuation.
Arm’s latest quarter gave investors more support for the long-term AI story, especially as demand for data center and AI-related computing continues to rise. The company reported March-quarter revenue of $1.49 billion, which was above Bank of America’s $1.47 billion estimate and Street expectations of $1.47 billion in the note. Non-GAAP diluted EPS came in at 60 cents, above Bank of America’s 58-cent estimate and Street expectations of 58 cents.