Arm stock rallied again Monday on yet another upbeat report from an investment research firm, adding to a hot run for the chip design company.
The strong trading day for Arm Holdings comes as Rosenblatt Securities raised its 12-month price target for the stock to 180, from 140, in a Monday client note. The firm reiterated a buy rating. More than a dozen analysts have increased their price targets for Arm stock since the company's fiscal third-quarter earnings report earlier this month, according to FactSet data.
On the stock market today, Arm stock rose roughly 10% at 146.42 in recent action. Shares for Arm have nearly doubled in value this month, helped by excitement about the impact of artificial intelligence in the chip market.
Arm Stock Gains Following Nvidia's Earnings
Last week was a good one for Arm stock as well. ARM shares gained Thursday and Friday after fellow chip company Nvidia posted strong quarterly earnings results as artificial intelligence computing boosts demand. That helped drive shares higher for Arm and other firms that have positioned themselves to benefit for AI chip demand.
Arm stock also popped earlier this month after the chip design firm beat Wall Street's expectations for its fiscal third quarter and gave a positive outlook. The company said Feb. 8 that it earned an adjusted 29 cents a share on sales of $824 million in its December quarter.
Arm's chip designs are used by semiconductor makers including Nvidia, Qualcomm and Apple. Royalties collected from chips sold using Arm technology represented 57% of the company's sales in the company's December quarter.
Analysts at Rosenblatt see Arm's royalty trends further improving, helped by "AI centric" strategic licensing talks, according to a Seeking Alpha quote of the firm's client note.
Monday's surge adds to a strong run in the company's first months on the public market. Arm shares are up 162% from their initial public offering price in September.
Meanwhile, Arm stock is on the IBD Leaderboard and Tech Leaders watchlists.
