Arm’s v9 Upgrade Fuels Rally as Citi Sees Higher Royalty Yields

Citi reiterates a Buy on Arm with a $190 target (about 46% upside), arguing that Arm’s v9 architecture commands roughly double the royalty rate of older tech, driving a 27% year‑to‑date rise in royalty revenue to a record $737M. Licensing revenue rose 25% to $505M last quarter, while data‑center royalties outpaced mobiles as cloud giants adopt Arm designs. Citi sees data centers potentially becoming Arm’s largest segment and pegs the 12‑month target at $162.12 (≈25% upside).