Key Stats for Arm Holdings Stock
- Price change for Arm Holdings stock in last 6 months: 92%
- $ARM Stock Price as of Sep. 16: $244
- 52-Week High: $453
- $ARM Stock Price Target: $289
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What Happened?
Arm Holdings (ARM) stock is in focus after CEO Rene Haas told CNBC’s Jim Cramer on “Mad Money” that his confidence in meeting Wall Street’s demand expectations for Arm’s new AGI CPU chip keeps growing. “We’re feeling good about it. We’re feeling really good about it,” Haas said.
This matters because demand was never really the issue for Arm’s first in-house data center chip.
The real question has been supply: whether Arm can actually secure enough manufacturing capacity to turn that demand into real revenue during a period when chipmakers are all competing for the same limited production lines.
The stakes are high. Arm has always made its money licensing chip designs to other companies.
The AGI CPU is different. It’s Arm actually selling a complete chip for the first time, a real shift in how the business works.
Back in May, Arm said it had visibility into $2 billion of AGI CPU demand, double the $1 billion figure it gave when it first announced the chip in March.
Arm Holdings stock fell 10% after that call because the company kept its official $1 billion outlook while it worked out the supply side.
By July’s earnings call, that picture had improved. Management said confidence in securing enough supply had increased, and Arm Holdings stock jumped more than 7% the next session.
On the call, CEO Rene Haas said the company’s confidence in hitting the $2 billion figure had grown between May and July. On Wednesday, he said it’s grown even further since then.
The underlying business also had a strong quarter.
- Total revenue hit $1.29 billion, up 22% from a year ago.
- Royalty revenue climbed 22% to $715 million, with data center royalties more than doubling again as more customers adopt Arm’s Neoverse chip designs.
- Licensing revenue grew 23% to $574 million, a Q1 record.
- Free cash flow came in at $665 million for the quarter.
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What the Market Is Telling Us About Arm Holdings Stock
Despite the recent momentum, Arm Holdings stock is still roughly 45% below its June high of $452, after a huge run-up earlier in the year.
Jim Cramer’s Charitable Trust exited its position after that spike to lock in gains, though Arm remains on the Trust’s watchlist.
The market’s message seems to be one of cautious rebuilding.
Investors want to see Arm actually convert its growing demand pipeline into delivered chips and booked revenue before fully re-rating the stock.
Haas’s repeated, escalating confidence, from “visibility” in May to increased confidence in July to even more confidence now in September, suggests the supply picture keeps improving.
But until Arm reports hard numbers on AGI CPU shipments, the stock’s recovery may continue to happen in cautious steps rather than a straight line back to its highs.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
