Arm Holdings is poised to become a major winner amid the emergence of agentic artificial intelligence, priming the compute hardware designer’s shares to rally, according to Bernstein. The investment firm initiated coverage of the chip name with an outperform rating. It also put a $300 price target on shares, implying 43% upside from Friday’s close. “The Gen AI paradigm is rapidly shifting from 1.0 (chatbot) to 2.0 (agent),” analyst David Dai said in a note. “Arm is the structural beneficiary of the renaissance of CPUs for agentic AI… given its unparalleled power efficiency.” ARM YTD mountain ARM year to date Agentic AI refers to a set of autonomous systems designed to execute complex tasks through independent planning and reasoning, requiring little human oversight. That new iteration of generative AI creates “much more value” than existing tools, largely because agentic AI is poised to benefit from wider adoption and enhanced monetization opportunities, according to the analyst. He noted that data centers focused on supporting agentic AI require four-times the compute power of their traditional counterparts. In addition, agentic AI consumes 1,000 times more tokens compared to applications belonging to the first iteration of generative AI, according to the analyst note. Bernstein’s call falls in line with consensus on the Street. Of the 40 analysts covering Arm, 25 have a buy or strong buy rating on the stock, LSEG data shows. Shares have risen 91% since the beginning of the year as investors look ahead to the future of the AI industry.
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