In November 2025, Arm Holdings and Nvidia announced an expanded partnership integrating NVLink Fusion technology into Arm’s Neoverse platform to enhance AI data center infrastructure efficiency and performance for cloud providers. This collaboration aims to accelerate the adoption of specialized AI infrastructure and is supported by Arm’s widespread deployment among leading hyperscalers such as Amazon, Microsoft, Oracle, Google, and Meta Platforms.
The partnership underscores Arm’s intent to cement its position in AI-driven data center markets by promoting tighter CPU-GPU integration for next-generation workloads.
We’ll explore how this Nvidia alliance and enhanced Neoverse platform could reinforce Arm’s royalty growth expectations and market expansion narrative.
Explore 26 top quantum computing companies leading the revolution in next-gen technology and shaping the future with breakthroughs in quantum algorithms, superconducting qubits, and cutting-edge research.
Arm Holdings’ investment story has centered on capturing accelerated royalty growth from a surging footprint in AI data centers, which remains the most important catalyst. The expanded partnership with Nvidia boosts Arm’s narrative of CPU-GPU integration, but it does not materially change the short-term focus on royalty ramp and potential exposure to customer self-sufficiency, a key business risk for shareholders. The most urgent risk still lies in hyperscalers bringing more design work in-house, which could challenge recurring royalty streams. One especially relevant recent announcement is Arm’s new collaboration with Nvidia on integrating NVLink Fusion into the Neoverse platform. This move is designed to strengthen Arm’s share among hyperscalers by addressing integration and efficiency hurdles in AI data center infrastructure, a critical area directly tied to Arm’s projected royalty and revenue expansion. Yet, against this potential, investors should also note the risks, including growing vertical integration by key hyperscaler customers, which could reduce …
Read the full narrative on Arm Holdings (it’s free!)
Arm Holdings’ outlook anticipates $7.4 billion in revenue and $2.3 billion in earnings by 2028. This is based on a projected 21.5% annual revenue growth rate and represents a $1.6 billion increase in earnings from the current $699 million.
Uncover how Arm Holdings’ forecasts yield a $166.72 fair value, a 27% upside to its current price.
ARM Community Fair Values as at Nov 2025
Some of the most optimistic analysts believed Arm could reach US$8.6 billion in revenue by 2028, driven by data center dominance, but also cautioned that growing customer independence might threaten long-term growth. Your view may differ widely from these expectations, so consider how new developments could shift both the risks and opportunities.
Explore 17 other fair value estimates on Arm Holdings – why the stock might be worth as much as 60% more than the current price!
Disagree with existing narratives? Create your own in under 3 minutes – extraordinary investment returns rarely come from following the herd.
A great starting point for your Arm Holdings research is our analysis highlighting 2 key rewards that could impact your investment decision.
Our free Arm Holdings research report provides a comprehensive fundamental analysis summarized in a single visual – the Snowflake – making it easy to evaluate Arm Holdings’ overall financial health at a glance.
Early movers are already taking notice. See the stocks they’re targeting before they’ve flown the coop:
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include ARM.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com