Arm Stock Continues Meteoric Rise Amid AI Stocks Buying Frenzy

Arm Holdings (ARM) continued its steep ascent on Monday, jumping for the fourth straight trading session. Arm stock is surging along with fellow AI-themed stocks Nvidia (NVDA) and Super Micro Computer (SMCI).




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In midday trades on Monday, Arm stock spiked more than 20% to 140.21. Earlier in the session, it notched a record high of 164.

Last week, Arm stock rocketed after the chip design firm beat Wall Street’s expectations for its fiscal third quarter and provided a bullish outlook for the current period.

In discussing the company’s outlook on a conference call with analysts, Chief Executive Rene Haas spoke the magic words for investors: artificial intelligence.

Arm is “seeing strong momentum and tailwinds from all things AI,” Haas said. That includes data-center processors from customers Amazon (AMZN), Microsoft (MSFT) and Nvidia, he said. Plus, Arm is being used to run AI on edge devices, such as Samsung’s Galaxy S24 smartphone, Haas said.

“There is just a lot of focus on investing and building designs in AI,” he said.

Arm Stock: Short Squeeze And Rerating

On Monday, Rosenblatt Securities analyst Kevin Cassidy reiterated his buy rating on Arm stock and raised his price target to 140 from 110.

“Arm’s earnings beat and raise caught the Street by surprise,” Cassidy said. “Obviously, the short squeeze on the shares was epic, and we believe has led to the re-evaluation on Arm’s business model.”

Elsewhere on the stock market today, Nvidia stock rose 1.9% to 735.30 in afternoon trading. And data-center specialist Super Micro Computer saw its shares pop 6.9% higher to 791.68.

Arm stock is on four IBD stock lists: IBD 50, Leaderboard, Global Leaders and Tech Leaders.

Nvidia stock is on five IBD lists: IBD 50, Leaderboard, Big Cap 20, Sector Leaders and Tech Leaders. The graphics-chip maker plans to release its fiscal fourth-quarter results on Feb. 21.

Super Micro stock is on the IBD Tech Leaders list. It delivered better-than-expected fiscal Q2 results and guidance on Jan. 29.

Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.

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