---
title: "Jefferies: Weak Near-term Royalty Revenue for Arm Holdings plc  but Strengthening AGI CPU Trend Makes Current Pullback an Attractive Medium- to Long-term Buy Opportunity"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/294486579.md"
description: "Jefferies maintains a Buy rating on Arm Holdings with a $320 target price. While near-term royalty revenue growth is tempered by weak smartphone demand, strong licensing revenue offsets this. The broker highlights a strengthening AGI CPU trend, forecasting FY2028 royalty revenue to exceed $1 billion. With expected 50% CAGR from FY2027-2031, Jefferies views the current stock pullback as an attractive medium-to-long-term buying opportunity."
datetime: "2026-07-31T09:16:53.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/294486579.md)
  - [en](https://longbridge.com/en/news/294486579.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/294486579.md)
---

# Jefferies: Weak Near-term Royalty Revenue for Arm Holdings plc  but Strengthening AGI CPU Trend Makes Current Pullback an Attractive Medium- to Long-term Buy Opportunity

Jefferies issued a report stating that the 1Q results for Arm Holdings plc (ARM.US) ended June and the guidance for 2Q ended September both exceeded expectations. The company is now more confident that AGI CPU revenue for FY2028 will exceed USD1 billion, and believes reaching USD2 billion is also possible, while Jefferies forecasts USD1.5 billion.

Jefferies said Arm Holdings plc (ARM.US) now expects royalty revenue growth for FY2027 to rise by a high double-digit percentage YoY, lower than the previous expectation of 20%, mainly due to weak smartphone demand. However, strong licensing revenue is sufficient to offset weak royalty revenue. The broker maintained its Buy rating with a TP of USD320.

Jefferies noted that revenue and earnings for Arm Holdings plc (ARM.US) are expected to deliver a CAGR of nearly 50% from FY2027 to FY2031. Agentic AI and inference are expected to drive the next phase of the AI investment cycle, and the broker expects Arm's valuation multiple to remain at a relatively high level, viewing the current share price pullback as an attractive medium- to long-term buying opportunity. (ad/da)(Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)

### Related Stocks

- [ARM.US](https://longbridge.com/en/quote/ARM.US.md)
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- [ARMG.US](https://longbridge.com/en/quote/ARMG.US.md)
- [ARMW.US](https://longbridge.com/en/quote/ARMW.US.md)
- [JEF.US](https://longbridge.com/en/quote/JEF.US.md)

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