Arm Holdings shares surge 137% over past year as analysts cite CPU demand from agentic AI computing and potential four-fold market growth over four years.

Arm Holdings (NASDAQ:ARM) shares are up 137% over the past year and 167% year-to-date. Bernstein set an Outperform rating with a $300 share price target, citing growth in CPU demand driven by agentic AI computing (AI systems that autonomously plan and execute tasks). Bernstein projected the chip design company's CPU market could grow by four times over the next four years.

TD Cowen raised its share price target to $265 from $165 and maintained a Buy rating on May 7th, noting strong interest in the firm's CPUs but warning that supply constraints could create hurdles.

Jim Cramer remarked that Arm's performance as the biggest winner following NVIDIA's earnings call seemed "a little silly," while acknowledging a "nice sized position" in the stock.