Billion Reason to Buy Arm Holdings Stock Now

Arm Holdings received fresh bullish support after reporting fiscal first-quarter results that beat expectations, with analysts citing accelerating demand for its new AGI CPU. The chip designer posted record Q1 revenue of $1.29 billion, up 22% year-over-year, while adjusted earnings came in at $0.45 per share versus the $0.40 expected. More notably, CEO Rene Haas said customer demand for Arm’s AGI CPU now exceeds $2 billion across fiscal 2027 and 2028. Arm’s results showed strong data-center momentum, with cloud and data-center royalties more than doubling year-over-year, alongside $715 million in total royalties. Shares are up 123.6% year-to-date in 2026. Valuation remains a risk: ARM trades at 48.82x price-to-sales and 28.67x price-to-book. For Q2, management guided revenue of $1.33 billion to $1.43 billion and adjusted EPS of $0.43 to $0.51.