Arm Holdings, along with Nvidia and Super Micro Computer, saw a significant jump in its stock value on Monday, marking the fourth consecutive trading session of growth. In midday trading, Arm stock surged more than 20% to reach 140.21, achieving a record high of 164 earlier in the session. The company’s positive momentum comes after it beat Wall Street’s expectations for its fiscal third quarter and provided an optimistic outlook for the current period, particularly in the artificial intelligence (AI) sector.
The notable rise in Arm stock is attributed to a short squeeze and a re-rating by analysts, including Rosenblatt Securities analyst Kevin Cassidy who reiterated his buy rating on the stock and increased the price target to 140 from 110. Amidst the positive performance of Arm stock, Nvidia stock also rose by 1.9% to 735.30, while Super Micro Computer saw a 6.9% increase in its shares, reaching 791.68. Arm stock is currently part of four IBD stock lists, including IBD 50, Leaderboard, Global Leaders, and Tech Leaders. Meanwhile, Nvidia stock is listed on five IBD lists, such as IBD 50, Leaderboard, Big Cap 20, Sector Leaders, and Tech Leaders.
Overall, this strong performance by Arm Holdings, as well as its fellow AI-themed stocks, reflects a growing investor interest in companies specializing in AI technology, positioned to benefit from the advancement and increased adoption of AI across various industries, from data centers to edge devices. With continued positive outlook and performance, these stocks remain in focus for investors looking to capitalize on the AI revolution.