Arm targets surge, as CPUs challenge GPU dominance in AI

UBS and TD Cowen significantly raised their price targets for Arm Holdings on June 25, 2026. Both investment banks maintained Buy ratings on the stock.

UBS increased its price target to $470 from $260. TD Cowen raised its target to $475 from $265.

Analysts expect CPUs to gain strategic importance in the expanding AI data center market. This shift suggests CPUs will become more critical as AI infrastructure evolves beyond the current dominance of GPUs.

UBS projects that Arm’s CPU business could generate $14 billion in revenue by 2030. The firm highlighted Arm's competitive advantages in low latency and energy efficiency.