Why Arm Stock Popped Today

Key Points Arm is strengthening its global supply chain network. A lucrative opportunity to satisfy the world's growing need for data center processors awaits. 10 stocks we like better than Arm Holdings › Shares of Arm Holdings (NASDAQ: ARM) jumped on Thursday after CEO Rene Haas said he believes the semiconductor designer is on track to generate $2 billion from its new artificial intelligence ( AI ) chip. Image source: The Motley Fool. Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue » Securing supply Arm's new AI chip has received a strong customer response. So much so that the chipmaker has struggled to produce enough of them. It's a good problem to have, but it's weighed on Arm's stock price nonetheless. Yet that might be about to change. During an interview with CNBC's Jim Cramer on Wednesday, Haas said supply constraints were easing for its Arm's new AGI CPU data center chip. Back in May, Haas pegged customer demand for the chip at $2 billion. Yet ARM guided for only $1 billion in revenue due to supply shortages. Now, however, Haas is more confident that Arm can satisfy that $2 billion in demand. "We're feeling good about it," Haas said. "We're feeling really good about it." Entering the AI CPU arena Arm has a lot riding on its new chip. The semiconductor leader has long licensed its architectures to other chipmakers. The AGI CPU marks Arm's first attempt at marketing its own fully developed chip. The AI central processor market is a massive opportunity. One that's set to grow roughly fivefold to $170 billion by 2030, according to Bank of America . So, any positive news regarding the success of Arm's AGI CPU is likely to be met by cheers from investors. Should you buy stock in Arm Holdings right now? Before you buy stock in Arm Holdings, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Arm Holdings wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $412,074 !* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,314,319 !* Now, it’s worth noting Stock Advisor’s total average return is 932 % — a market-crushing outperformance compared to 209% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor , and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of September 17, 2026. Bank of America is an advertising partner of Motley Fool Money. Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Arm Holdings. The Motley Fool has a disclosure policy .

A lucrative opportunity to satisfy the world's growing need for data center processors awaits.

Shares of Arm Holdings (NASDAQ: ARM) jumped on Thursday after CEO Rene Haas said he believes the semiconductor designer is on track to generate $2 billion from its new artificial intelligence ( AI ) chip.

Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »

Arm's new AI chip has received a strong customer response. So much so that the chipmaker has struggled to produce enough of them. It's a good problem to have, but it's weighed on Arm's stock price nonetheless.

During an interview with CNBC's Jim Cramer on Wednesday, Haas said supply constraints were easing for its Arm's new AGI CPU data center chip.

Back in May, Haas pegged customer demand for the chip at $2 billion. Yet ARM guided for only $1 billion in revenue due to supply shortages.

Now, however, Haas is more confident that Arm can satisfy that $2 billion in demand.