What's Going On With British Chipmaker Arm Stock Monday?
Portfolio Pulse from Anusuya Lahiri
Arm Holdings Plc (NASDAQ:ARM) stock surged over 30% on Monday, following a 117% increase last week, adding close to $100 billion in market cap. This comes after the company reported quarterly sales of $824 million, surpassing analyst expectations, and an EPS of $0.29. The growth is attributed to the success of Armv9-based chips and strong demand for advanced Arm CPUs, particularly in AI investments. Nvidia Corp (NASDAQ:NVDA) also saw a 7% increase last week. Morgan Stanley analyst Lee Simpson raised ARM's price target to $107 from $55, highlighting ARM's leadership in silicon IP and potential growth in cloud and autos with the adoption of ARMv9 architecture.
February 12, 2024 | 6:22 pm
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Arm Holdings Plc stock surged over 30% after reporting strong quarterly results and receiving a positive analyst outlook from Morgan Stanley, with a raised price target to $107.
The significant stock price increase is directly tied to the company's better-than-expected quarterly performance and the optimistic future growth outlook provided by analysts, particularly in AI and ARMv9 chip adoption.
CONFIDENCE 90
IMPORTANCE 95
RELEVANCE 100
POSITIVE IMPACT
Nvidia Corp saw a 7% increase last week, potentially benefiting indirectly from the positive market sentiment around chipmakers, highlighted by ARM's success.
Nvidia's stock increase may be partially attributed to the overall positive sentiment in the semiconductor industry, underscored by ARM's reported success and market optimism.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50