Key Highlights
- Shares of Arm Holdings climbed more than 14% during trading after Nvidia announced two processors utilizing Arm architecture at Computex in Taipei
- The RTX Spark AI PC processor, developed jointly with MediaTek, will power high-end Windows computers and launches in fall 2025
- Nvidia’s data center-focused Vera processor, built on Arm technology, is scheduled for release in the third quarter of 2026
- Investment firm Mizuho increased its Arm price target from $360 to $425 while maintaining its Outperform rating
- The company’s fourth-quarter fiscal 2026 revenue reached $1.49 billion, representing a 20% annual increase, with data center royalty revenue more than doubling
Shares of Arm Holdings (ARM) experienced an intraday surge exceeding 14% on June 1 following Nvidia’s keynote presentation at Computex in Taipei, where the graphics chip giant revealed two processors based on Arm’s architecture. The stock had already seen a more than threefold increase in value year-to-date prior to this announcement.
Arm Holdings plc American Depositary Shares, ARM
The chip giant introduced the RTX Spark Superchip alongside the Vera data center processor, both leveraging Arm-based architectures. Given Arm’s business model centered on licensing and royalties, each chip unit sold generates revenue for the company.
The RTX Spark represents a new artificial intelligence PC processor created through a partnership with MediaTek. According to Nvidia, this collaboration enhanced the chip’s energy efficiency, processing capabilities, and network connectivity features.
Over 30 different laptop and desktop models from major manufacturers including Microsoft, Dell, HP, Asus, Lenovo, and MSI are anticipated to incorporate RTX Spark when they debut this fall. This represents significant market penetration across the personal computer industry.
The Vera processor is designed for data center applications and is scheduled to begin shipping in the third quarter of 2026. According to Arm’s latest quarterly financial report, data center royalty revenue more than doubled compared to the previous year.
Shares of MediaTek increased over 5% in Taiwan trading following the announcement. Meanwhile, AMD and Qualcomm shares declined in premarket trading, as Nvidia’s expansion into the PC market poses a competitive challenge.
CNBC’s Jim Cramer characterized the news as “amazing for club holding ARM” and stated: “Nvidia keynote takes aim at Intel and AMD with much faster, better CPU for agents made with ARM. Breakthrough.”
Nvidia CEO’s Perspective on AI-Powered Personal Computers
At his keynote address, Nvidia CEO Jensen Huang presented a future where AI agents execute sophisticated operations locally on personal computers — including file searches, research functions, and query responses — without depending on cloud computing resources.
“One hundred percent of the world’s PC industry has joined us to reinvent the PC,” Huang declared.
Arm CEO Rene Haas is slated to present his Computex keynote on Tuesday, where market observers will look for additional information regarding the company’s artificial intelligence roadmap.
“AI is moving to every device and every physical system,” Haas stated during Arm’s May earnings conference call. “Phones, PCs, vehicles, factories, robots, cameras, sensors, and connected devices all need efficient, secure compute with software that scales.”
Financial Performance Update from Arm
Arm reported fourth-quarter fiscal 2026 revenue of $1.49 billion, marking a 20% year-over-year increase. Non-GAAP earnings per share reached $0.60.
Licensing revenue increased 29% to $819 million. Royalty revenue grew 11% to $671 million. For the full fiscal year 2026, total revenue reached $4.92 billion, representing a 23% increase.
CEO Rene Haas reported that confirmed customer commitments for Arm’s AGI CPU have exceeded $2 billion spanning fiscal years 2027 and 2028 — representing a doubling of the figure announced at the product’s initial unveiling.
The company has established a revenue goal of $15 billion from AGI CPU sales by fiscal year 2031. The overall CPU market opportunity is projected to exceed $100 billion by 2030.
Following the Computex revelations, Mizuho elevated its price target for Arm from $360 to $425 while keeping its Outperform rating intact. The firm highlighted sustained smartphone demand alongside expansion in cloud computing, artificial intelligence, and custom silicon implementations.
