New York, May 22, 2026, 10:11 EDT
Arm Holdings stock topped $300 on Friday morning, as the rally kept running. The chip designer hit $300.89 by 9:58 a.m. Eastern, up 0.9%, according to MarketBeat. Arm is now in the thick of the AI semiconductor trade.
Investors aren’t just focused on graphics processors anymore. The shift comes as money moves toward central processing units, or CPUs, too. CPUs, the general-use chips that manage work inside servers, are getting more attention with AI agents pushing into more complex tasks beyond the first wave of generative AI models.
Nvidia lit that trade up again this week. The company’s quarterly revenue hit a record $81.6 billion, jumping 85% from last year. Data-center revenue also set a record at $75.2 billion. CEO Jensen Huang said, “Agentic AI has arrived.” NVIDIA Investor Relations
Arm isn’t a direct rival to Nvidia like AMD or Intel. The company sells processor designs and collects royalties when those designs get used in chips that ship. That’s got Wall Street looking at Nvidia’s move into Arm-based CPUs as a possible boost to royalties for Arm.
Arm got an Outperform rating and a $300 price target in new coverage from Bernstein’s David Dai, who wrote that Arm is positioned to benefit from AI moving from chatbots to autonomous agents. “Arm stands out in server CPUs given its unparalleled power efficiency,” Dai said, according to Benzinga. Benzinga
Arm shares set a fresh record on Thursday, reaching $298.69 intraday and finishing up 16.16% at $298.23. The rally followed a bullish note from Bernstein, which projected Arm’s profits could jump five times in four years.
Arm posted fiscal Q4 revenue of $1.49 billion and $4.92 billion for the full year, numbers that supported the stock’s rally. Licensing brought in $819 million for the quarter, and royalty revenue was $671 million. The company pointed to gains in cloud AI, with data-center royalties more than doubling on the year.
Arm is pushing further into data centers. The company said demand for its Arm AGI CPU—a server chip for AI-agent workloads—has topped $2 billion for fiscal 2027 and 2028. That’s more than twice the figure it revealed a few weeks ago. Meta is leading and co-developing. Arm said systems using the chip are shipping from ASRock, Lenovo, Quanta, and Supermicro.
Some investors are looking at the company differently now. According to Barchart, Dai said Arm sits right in the middle of a CPU “renaissance,” as big cloud players like Google at Alphabet, Microsoft, and Meta move to Arm-powered custom chips to get better power use and higher compute density. Barchart.com
Semiconductors saw a shake-up as Arm jumped 38% over three sessions, pushing past Micron and now sits second for year-to-date gains among iShares Semiconductor ETF names, trailing only Intel, according to Benzinga.
Some are saying the rally might be getting ahead of itself. MarketBeat shows Arm’s average 12-month analyst price target at $208.79, which is still under where the stock trades now, even with the top target at $300. Barchart pointed out the relative strength index is close to overbought, a technical indicator that sometimes comes just before a drop.
So far, the market is buying into a simpler theme. Nvidia’s push in AI spending is showing up outside GPUs, while Arm has a shot at more revenue as CPUs matter more in data centers. But keeping shares up at these levels will take hard revenue, not just promises.
