Key Highlights
- ARM Holdings stock hovers around $223, reflecting a 15% recent gain, with a 52-week peak at $239.50 and market capitalization exceeding $235 billion.
- Television personality Jim Cramer declared “ARM what a horse” on social media, revealing his charitable trust’s position and suggesting the stock remains undervalued.
- Fiscal 2026 results showed revenue climbing to $4.92 billion—a 23% increase—while non-GAAP earnings per share reached a record $0.60 in the March period, exceeding projections.
- In March 2026, CEO Rene Haas introduced the company’s first-ever chip, the AGI CPU, projecting $15 billion in yearly revenue by 2031—a development that propelled shares up 16% immediately.
- Wall Street remains optimistic, with Sanford C. Bernstein assigning an Outperform rating and $300 target, despite regulatory scrutiny adding complexity to the outlook.
When Jim Cramer tweeted just four words about ARM Holdings—”ARM what a horse”—the message carried weight. Brief and direct, especially from someone disclosing ownership through his charitable trust, the statement resonated across trading desks.
This isn’t Cramer’s first time championing the semiconductor designer. In January, he urged CNBC audiences to accumulate shares, arguing the valuation hadn’t caught up with potential. He specifically highlighted humanoid robotics as a catalyst that could drive revenues to unprecedented levels. That’s a detailed investment case, not mere hype.
Arm Holdings plc American Depositary Shares, ARM
Shares were recently changing hands around $223, approaching the 52-week zenith of $239.50. Year-to-date in 2026, the equity has roughly doubled in value.
Financial Performance Validates the Momentum
The enthusiasm surrounding Cramer’s remarks stems from robust underlying metrics. ARM concluded fiscal 2026 with revenue of $4.92 billion, representing 23% year-over-year expansion. This achievement extends a three-year streak of growth exceeding 20%. Non-GAAP earnings per share reached an all-time high of $0.60 during the March quarter, surpassing analyst expectations of $0.58.
Revenue from data center operations more than doubled compared to the prior year, according to Bank of America’s analysis. CEO Rene Haas stated clearly in February: “Our data center business is exploding.”
This transformation defines ARM’s current trajectory. Historically recognized as a smartphone royalty operation, the company is now witnessing a fundamental shift. Haas projects that data centers will eclipse smartphones as ARM’s primary revenue generator within several years.
AGI CPU Introduction Reshapes Revenue Outlook
The most significant development occurred March 24, when Haas presented something unprecedented in ARM’s 35-year existence: the company’s first proprietary semiconductor.
Dubbed the AGI CPU, this processor targets AI inference workloads within data center environments. Management forecasts this single product line will deliver approximately $15 billion in annual revenue by 2031—roughly six times the company’s entire 2025 sales figure. Haas projected overall corporate revenue reaching $25 billion by that timeframe.
Collaborators announced alongside the launch included Meta, OpenAI, Cloudflare, and SK Telecom. The stock surged 16% during that trading session.
Analysts responded decisively. Sanford C. Bernstein initiated coverage with an Outperform designation and $300 price objective. Rosenblatt elevated its target to $270. TD Cowen established a $265 mark. Among 27 analysts tracking the security, 20 maintain Buy recommendations.
The valuation remains elevated—ARM commands approximately 265 times trailing earnings—and headwinds exist. Several law firms have announced securities-fraud inquiries connected to reports of a U.S. antitrust investigation examining ARM’s licensing framework. CEO Haas also noted during the Q4 earnings call that smartphone royalty softness continues to weigh on near-term results.
Insider dispositions have persisted as well. Haas divested roughly $1.5 million in stock during April through a scheduled 10b5-1 arrangement. Insider William Abbey sold $1.49 million worth in May, also via a pre-established plan related to tax obligations from equity compensation.
The consensus among 39 analysts stands at Buy with an average price target of $229, according to Stock Analysis, aligning closely with current trading levels.
