February 22, 2024

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Arm Stock continues its meteoric rise amid the AI ​​stock buying frenzy

Arm Stock continues its meteoric rise amid the AI ​​stock buying frenzy

Holding arm (armThe stock continued its sharp rise on Monday, jumping for the fourth straight session. ARM stock is rising along with other synthetic stocks Nvidia (NVDA) And Super micro computer (SMCI).




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

Last week, Arm stock rose after the chip designer beat Wall Street's expectations for the fiscal third quarter and provided a bullish forecast for the current period.

While discussing the company's outlook on a conference call with analysts, CEO Rene Haas spoke the magic words to investors: artificial intelligence.

Arm is “seeing strong momentum and tailwinds from all things AI,” Haas said. This includes data center processors from customers Amazon (Amzn), Microsoft (MSFT) and Nvidia, he said. Additionally, Arm is being used to power AI on high-end devices, such as Samsung's Galaxy S24 smartphone, Haas said.

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

ARM Stocks: Short squeeze and reassessment

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

“Arm’s earnings surprised the Street and went up,” Cassidy said. “Clearly, the short squeeze in the stock has been epic, and we believe it has led to a re-evaluation of Arm's business model.”

Elsewhere on the stock market today, Nvidia stock rose 1.9% to 735.30 in afternoon trading. Data center specialist Super Micro Computer saw its shares rise 6.9% to 791.68.

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ARM stock is on four IBD stock lists: Bahraini dinar 50leaderboard, Global leaders And technology leaders.

Nvidia stock is on five IBD lists: IBD 50, Leaderboard, and… Large cap 20, Sector leaders And technology leaders. The graphics chip maker plans to release its fiscal fourth-quarter results on February 21.

Super Micro stock is on the IBD Tech Leaders list. It provided better-than-expected second-quarter financial results and guidance on January 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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