Arm Holdings Stock Continues To Climb: What's Going On?

Arm Holdings Plc ARM shares are trading higher Monday amid continued strength in semiconductor stocks.

What To Know: Several chip stocks have moved higher on continued upward momentum in recent sessions following better-than-expected financial results and strong guidance from Nvidia Corp NVDA.

On the conference call following the company's quarterly results, Nvidia CEO Jensen Huang said the company has been unable to keep up with demand in the short term and noted that current conditions are excellent for continued growth.

The Nvidia CEO also said accelerated computing and generative AI have hit a tipping point of surging demand across the globe.

Arm shares have been trending higher since the company reported its own quarterly results earlier this month.

Arm beat analyst estimates on the top and bottom line and issued strong guidance. The company said it had room to increase prices on some of its product offerings and noted that it planned to expand into new markets due to AI demand.

SoftBank acquired Arm in 2016 for $32 billion and took the company public last year in what was the biggest IPO of 2023. Softbank still owns approximately 90% of the chip designer's outstanding shares. Next month, Arm's 180-day post-IPO lockup is set to expire.

See Also: Intel Foundry Day Takeaway: Revenue Scale Is ‘Several Years’ Away, Analysts Say

ARM Price Action: Arm shares are up more than 75% since the start of the year. The stock was up 3.45% at $137.95 at the time of publication, according to Benzinga Pro.

Photo: Wikimedia Commons.