Key Takeaways
- ARM Holdings stock is currently hovering near $223, reflecting a recent gain of approximately 15%, with a 52-week peak at $239.50 and a market capitalization reaching $235.76 billion.
- Television personality Jim Cramer shared on X that his charitable trust owns ARM, describing the stock as “ARM what a horse” and suggesting it hasn’t appreciated enough.
- The company reported fiscal 2026 revenue of $4.92 billion, representing 23% growth, while achieving a record non-GAAP EPS of $0.60 in its March quarter, exceeding analyst projections.
- In March 2026, CEO Rene Haas introduced the AGI CPU — the company’s debut proprietary chip — with projections of $15 billion in annual sales by 2031, triggering a 16% single-day stock surge.
- Wall Street sentiment remains positive overall, highlighted by Sanford C. Bernstein’s Outperform rating and $300 target, although regulatory scrutiny regarding antitrust concerns adds complexity.
When Jim Cramer took to X with a brief message about ARM Holdings — specifically, “ARM what a horse” — the post carried weight. His declaration that his charitable trust maintains a position in the chipmaker added credibility to the enthusiasm.
Cramer’s support for ARM isn’t recent. During a January CNBC segment, he urged viewers to consider purchasing shares, arguing the valuation remained too low and highlighting humanoid robotics as a catalyst for explosive revenue growth ahead. His commentary reflects a deliberate investment perspective rather than casual promotion.
Arm Holdings plc American Depositary Shares, ARM
Shares of ARM were changing hands around $223 during recent trading, approaching the 52-week high of $239.50. Year-to-date performance shows the stock has approximately doubled in 2026.
Strong Financial Performance Fuels Momentum
Cramer’s endorsement gained traction partly because ARM’s financial metrics justify optimism. The company delivered fiscal 2026 revenue totaling $4.92 billion, marking 23% year-over-year expansion. This achievement continues a three-year streak of exceeding 20% annual growth. Its non-GAAP earnings per share reached an all-time high of $0.60 during the March quarter, surpassing the Street’s $0.58 estimate.
According to Bank of America analysis, data center revenue climbed more than 100% compared to the prior year. CEO Rene Haas stated emphatically in February: “Our data center business is exploding.”
This transformation represents the heart of ARM’s evolving narrative. Historically recognized as a smartphone licensing enterprise, Haas now projects that data center operations will eclipse smartphones as the primary revenue driver within the next several years.
First-Ever Chip Launch Reshapes Growth Trajectory
The most significant development emerged March 24, when Haas appeared in San Francisco to unveil a historic announcement: ARM had designed and manufactured its first proprietary chip in the company’s 35-year existence.
Dubbed the AGI CPU, this product targets AI inference workloads within data center environments. Management forecasts this single product line will produce approximately $15 billion in annual revenue by 2031 — a figure representing roughly six times the company’s entire 2025 revenue. Haas also projected total corporate revenue reaching $25 billion by that timeframe.
The announcement featured partnerships with industry giants including Meta, OpenAI, Cloudflare, and SK Telecom. Investor response was immediate: shares climbed 16% during that trading session.
Analyst reactions followed swiftly. Sanford C. Bernstein initiated coverage with an Outperform designation and set a $300 price objective. Rosenblatt Securities increased its target to $270. TD Cowen established a $265 target. Among 27 analysts tracking the stock, 20 assign Buy ratings.
Valuation concerns remain legitimate — ARM currently trades at approximately 265 times trailing twelve-month earnings — and several risk factors warrant attention. Multiple law firms disclosed securities fraud investigations connected to reports of U.S. antitrust regulatory inquiry into the company’s licensing practices. Additionally, CEO Haas acknowledged during the Q4 earnings call that smartphone royalty revenue continues facing near-term headwinds.
Insider selling activity has persisted as well. Haas divested approximately $1.5 million in shares during April through a pre-established 10b5-1 trading plan. Executive William Abbey sold $1.49 million worth in May, also through a pre-arranged plan associated with tax obligations from equity compensation.
Consensus among 39 analysts tracked by Stock Analysis reflects a Buy rating with an average price target of $229, closely aligned with current trading levels.
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