Why Arm Holdings stock is soaring again today
Arm Holdings (eight 10.04%) The stock is surging in Monday’s trading session, up 10.1% as of 1:15 PM ET, according to data from S&P Global Market Intelligence.
Before the market opened, it was announced that semiconductor technology companies had joined a new partnership to advance artificial intelligence and other technologies for the telecommunications industry. The stock is also on the rise due to optimistic analyst reporting. Currently, the company’s stock price has risen 132% compared to the closing price on the day of the IPO in September last year.
Arm has just joined a powerful new alliance.
This year’s Mobile World Congress kicks off on Monday and runs through Thursday, and has already delivered some promising news to Arm investors. A semiconductor design company has signed a new partnership. nvidia, microsoft, Amazon, softbanksamsung, nokiaand ericsson Powering wireless local area networks (RAN) and AI technologies in the telecommunications industry.
The new partnership, called the AI-RAN Alliance, aims to improve efficiency across the telecommunications industry and pave the way for new innovations.
“The AI-RAN Alliance brings together industry leaders with expertise in silicon through software to realize the promise of ubiquitous AI and 6G,” said Ronnie Vasishta, senior vice president of communications at NVIDIA.
It will likely be a few years before the fruits of this new partnership hit the market, but Arm’s inclusion in it is undoubtedly a positive sign for the company.
Analysts see potential for further upside.
Rosenblatt Securities Analyst Hans Mosesmann It issued a bullish note on Arm stock on Monday, raising its one-year price target for the stock from $140 per share to $180 per share. Mosesmann sees the royalty fee trend as a positive catalyst for Arm and expects AI-related licensing to help significantly increase the rates the company can command.
In addition to favorable business developments, the analyst believes that Arm’s business warrants a higher valuation multiple than what it currently offers. Rosenblatt’s new target is about 23% higher than the current stock price.
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Microsoft, and Nvidia. The Motley Fool recommends the following options: Buy Microsoft’s January 2026 $395 call and sell Microsoft’s January 2026 $405 call. The Motley Fool has a disclosure policy.
