Arm Holdings shares rose more than 8% on Thursday.
Bank of America and Mizuho significantly raised their price targets for the stock. These upgrades center on the company's potential in agentic AI.
Agentic AI systems perform complex, multi-step tasks autonomously. Analysts believe Arm’s CPU architecture is uniquely suited for the decision-making and orchestration these workloads require.
This technology serves as a powerful demand accelerant. It expands Arm's long-term prospects in the data center market.