Arm Holdings Plc is extending a big rally in the wake of last week’s blockbuster earnings report that showed artificial intelligence spending is bolstering sales.
The chip designer’s shares soared as much as 42% on Monday on volume that was more than six times the average over the past three months. The advance briefly pushed the stock’s gains to more than 100% in the three trading sessions since Arm’s results were released after markets closed on Feb. 7.
“What you’re seeing here is a feeding frenzy for anything to do with AI,” said Dennis Dick, trader at Triple D Trading. “We’ve already seen this kind of thing with Nvidia, but now Arm is being put in the same classification. It isn’t a pure AI play, it does other things, but it does have that division, and that’s what driving the price here. It’s just about the AI boom.”
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Arm is benefiting from a push beyond smartphone technology, helping fuel growth and profitability. Last week, Arm projected revenue of $850 million to $900 million for the March quarter, far surpassing the average analyst estimate at $778 million. Chief Executive Officer Rene Haas said opportunities presented by AI are still in the early stages.
There’s some expectation that this rally could continue, with traders continuing to