Arm Holdings surges on AI chip demand and revenue growth

Arm Holdings ADR stock jumped nearly 13% in morning trading on Monday as semiconductor shares rallied following several positive developments for the chip designer.

The gain followed Arm's fiscal 2026 annual report, filed on September 18, which showed full-year revenue of approximately $4.92 billion. This represented a gain of roughly 22.8% compared to the prior year. Pre-tax profit grew around 27%, outpacing the company's revenue growth rate.

CEO Rene Haas said the company's new AGI CPU, a data center chip designed for agentic AI workloads, can generate approximately $2 billion in demand across fiscal years 2027 and 2028.

SoftBank, Arm's parent company, moved to expand its Arm margin loan to $25 billion.

Jefferies raised its price target on the stock to $320 from a previous level and maintained a Buy rating. Susquehanna lifted its target to $320 with a Positive rating, while Wells Fargo kept its Overweight stance. Morgan Stanley maintained a Hold rating on the shares.

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