We adjust our 12-month target to $120 from $140, on a lower revised peer-premium P/E of 64.8x our CY 25 EPS estimate, warranted given our view of growth prospects. We adjust our FY 25 (Mar.) EPS estimate to $1.60 from $1.76 and FY 26’s to $1.92 from $2.00. ARM posts Mar-Q EPS of $0.36, beating the $0.31 consensus. Revenue rose 47%, well ahead of expectations, led by higher royalty (+37%) and licensing sales (+60%). Jun-Q revenue/EPS guide exceeded consensus views, but full-year FY 25 was more tempered (still implies +20% Y/Y growth). The shift towards v9-architecture from v8 remains an opportunity (20% of royalties), which is supporting higher revenue within smartphones and share gain opportunities in automotive/hyperscalers. Although valuation remains a concern, the growth trajectory is extremely attractive (we see +20% annually through FY 27) given cloud share gain from next-gen AI GPUs and CPUs expected to enter the market, as power efficiency becomes an increasingly critical factor for cloud customers.