Arm Holdings Soars Amid AI Demand
Shares of Arm Holdings (NASDAQ: ARM) surged 68% in May 2023, significantly outperforming the S&P 500’s return of 11.7% over the same period, according to S&P Global Market Intelligence. Wall Street’s bullish outlook on Arm as a key beneficiary of the growing demand for AI technology, coupled with Nvidia’s impressive quarterly report from May 20—showing an 85% year-over-year revenue increase—has driven this surge.
On May 20, Arm’s stock gained 15.1% after Bernstein initiated coverage with a buy rating, leading to a total increase of 37.4% in just three days. Arm is well-positioned to capitalize on AI growth due to its energy-efficient CPU architecture, which is integral to Nvidia’s upcoming CPU release, Vera. The company projects a fiscal Q1 2027 revenue of $1.26 billion, representing a 20% year-over-year increase.
Wall Street analysts expect Arm’s adjusted earnings per share (EPS) to grow by 23% in the current fiscal year, accelerating to 41% in the next fiscal year.
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