ARM Stock Surges 8% on AI Chip Prospects and Strong Earnings
ARM Holdings shares rallied 8% to $115.69 following Susquehanna's upgrade to Positive with a $150 price target. The analyst cited ARM's expanding role in AI chip development and higher royalty rates from its v9 architecture as key growth drivers.
Second-quarter earnings surpassed expectations with $0.39 EPS on $1.14 billion revenue, marking 34.5% year-over-year growth. The company's collaboration with SoftBank and Broadcom on OpenAI's Titan-1 chip, expected in late 2026, signals deepening involvement in AI infrastructure.
While smartphone and PC market softness has pressured the stock recently, the new architecture's doubled royalty rates provide structural upside. Trading volume reached 4.32 million shares, remaining 23% below average daily activity.
