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Major Bank Ratings | Citi: Continues to See Arm as a Main Beneficiary of AI Infrastructure, Target Price $300

Major Bank Ratings | Citi: Continues to See Arm as a Main Beneficiary of AI Infrastructure, Target Price $300

格隆汇格隆汇2026/07/30 13:21
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Glonghui, July 30th|Citi released a research report stating that Arm announced its results for the first quarter of fiscal year 2027, with revenue and profit exceeding market expectations by 1% and 11% respectively; the median revenue and profit guidance for the second quarter is higher than forecasts by 3% and 10% respectively. The bank noted that strong growth in cloud AI and licensing businesses helped offset the impact from weakening demand and product mix in the mobile phone market. Citi raised its fiscal year 2027 revenue and operating profit forecasts by 1% and 4% respectively. Management mentioned that demand for general artificial intelligence (AGI) CPUs has already exceeded $2 billion, and business visibility is improving. Therefore, Arm continues to be regarded as a main beneficiary of AI infrastructure, and recent share price pullbacks are believed to offer a more attractive entry opportunity. The "Buy" rating is maintained, with a target price of $300. Citi also raised Arm's fiscal year 2027 to 2030 revenue forecasts by about 1% to reflect robust licensing business, partly offset by weaker mobile phone patent income. Earnings forecasts for fiscal years 2027 and 2029 are raised by 4% and 1% respectively.
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