Key Highlights
- Shares of Arm Holdings rose over 14% during trading following Nvidia’s announcement of two Arm-architecture processors at Computex in Taipei
- The RTX Spark AI PC chip, developed jointly with MediaTek, is designed for high-end Windows laptops and desktops with an expected fall release
- Nvidia also introduced the Vera data center chip running on Arm architecture, scheduled for shipment in the third quarter of 2026
- Mizuho analysts increased their Arm price target from $360 to $425 while maintaining their Outperform rating
- Arm’s fiscal fourth quarter 2026 revenue reached $1.49 billion, representing 20% growth year-over-year, with data center royalties experiencing more than 100% increase
Shares of Arm Holdings (ARM) climbed more than 14% during June 1 trading sessions after Nvidia leveraged its Computex presentation in Taipei to reveal two new processors utilizing Arm architecture. This surge added to an already impressive year that saw the stock price more than triple before this latest catalyst.
Arm Holdings plc American Depositary Shares, ARM
The semiconductor giant introduced both the RTX Spark Superchip and the Vera data center chip. Each processor operates on Arm-based architecture. Given Arm’s business model centered on royalty payments, every unit shipped translates directly into revenue for the company.
The RTX Spark represents an AI-focused PC processor created through a partnership with MediaTek. According to Nvidia, this collaboration enhanced the chip’s energy efficiency, computing power, and network capabilities.
Industry heavyweights including Microsoft, Dell, HP, Asus, Lenovo, and MSI plan to introduce over 30 laptop and desktop models featuring RTX Spark when they launch this fall. This represents significant market penetration across the consumer PC segment.
The Vera chip is engineered for data center applications and has a planned delivery date in the third quarter of 2026. Arm’s latest quarterly earnings revealed that data center royalty income more than doubled compared to the previous year.
MediaTek shares climbed over 5% in Taiwan markets following the announcement. Meanwhile, AMD and Qualcomm experienced declines in premarket trading, as Nvidia’s expansion into the PC market represents direct competition.
Jim Cramer from CNBC described the news as “amazing for club holding ARM” and noted: “Nvidia keynote takes aim at Intel and AMD with much faster, better CPU for agents made with ARM. Breakthrough.”
Jensen Huang’s AI PC Strategy
In his Computex address, Nvidia CEO Jensen Huang outlined a future where AI agents handle sophisticated operations locally on personal computers — including file searches, research tasks, and query responses — minimizing dependence 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 has a scheduled Computex keynote address on Tuesday, where market observers anticipate additional information about the company’s artificial intelligence roadmap.
“AI is moving to every device and every physical system,” Haas stated during Arm’s May earnings presentation. “Phones, PCs, vehicles, factories, robots, cameras, sensors, and connected devices all need efficient, secure compute with software that scales.”
Arm’s Latest Financial Performance
Arm delivered fourth quarter fiscal 2026 revenue totaling $1.49 billion, marking a 20% increase year-over-year. The company achieved non-GAAP earnings per share of $0.60.
Licensing revenue increased 29% to reach $819 million. Royalty revenue expanded 11% to $671 million. For the complete fiscal year 2026, revenue totaled $4.92 billion, representing 23% growth.
CEO Rene Haas revealed that committed customer orders for Arm’s AGI CPU had expanded to exceed $2 billion spanning fiscal years 2027 and 2028 — representing a twofold increase from figures announced at the product launch.
Arm has established a revenue goal of $15 billion for its AGI CPU line by fiscal 2031. The company estimates the total addressable CPU market will surpass $100 billion by 2030.
Following the Computex revelations, Mizuho elevated its price target for Arm to $425 from the previous $360 while keeping its Outperform rating intact. The firm highlighted strong smartphone market fundamentals and expanding opportunities in cloud computing, artificial intelligence, and custom silicon development.
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