Arm Holdings (ARM) has had a rough month. The chip designer's shares edged lower amid the kind of AI sector turbulence that makes traders second-guess everything. After riding high earlier this year, profit-taking kicked in, and now everyone's wondering whether the company's role powering next-generation AI compute is enough to spark a rebound.

So we did what any rational person would do in 2025: we asked an AI to predict the future. Specifically, we ran Arm through an AI price-prediction agent powered by OpenAI's GPT to see how a data-driven model handicaps the next 60 days for a stock that's become shorthand for the entire AI trade.

What the Model Actually Sees

The AI agent crunched recent price action and a focused set of technical indicators to generate a 60-day outlook. At the time of the analysis, Arm was trading at $110.53. The model's base-case projection through March 30 came out to:

• Average predicted price: $116.25
• Implied move: slightly higher over the next 60 days
• Signal snapshot: MACD and RSI both skewed positive

Translation: given current momentum and volatility, the most likely path is a modest grind higher rather than a dramatic reset. Nothing explosive, but steady. For what it's worth, broader AI price predictions suggest Arm could hit $300 by 2030, though that's a different conversation entirely.

Why Arm Matters

Arm Holdings isn't just another chip stock. It's the backbone IP provider for next-gen AI and data center chips, licensing its energy-efficient architectures to giants like Nvidia (NVDA) and Apple (AAPL). Surging demand for AI compute has driven royalty growth, with data center penetration accelerating as hyperscalers adopt Arm-based designs for cost-effective scaling.

Post-IPO momentum remains a key trader focus, fueled by licensing deals and the v85 architecture rollout that optimizes AI workloads. Recent quarters show royalty revenue climbing on higher chip volumes, though supply chain hiccups and China exposure add short-term noise.

The model's conservative upside reflects Arm's premium valuation after a sharp pullback from the October peak. Trading at elevated forward multiples, the stock faces resistance unless earnings confirm that hyperscaler adoption is ramping further.

What the Technicals Say

Dual-positive MACD and RSI signals point to building momentum without overbought exhaustion. The MACD crossover signals fresh buying pressure, while RSI stays below 70, leaving room for steady gains amid AI tailwinds.

Wall Street, for now, is still leaning into that growth. Across major platforms, analysts maintain a Strong Buy consensus with 12-month price targets clustering in the mid-170s to mid-180s. Some of the more aggressive firms see upside into the high-200s if Arm maintains its dominant share in AI chip IP. Even the median targets imply meaningful upside from current levels.

The AI forecast should be viewed as a short-term temperature check on how quickly the market might be willing to recommit to Arm's premium after recent sector volatility. It's not a verdict on whether the company's AI chip IP dominance is over—far from it.