Why Arm Holdings Stock Was Moving Higher Today

Shares of **Arm Holdings **(ARM +4.03%) were among the winners today, benefiting from a broader recovery in the tech sector and a pair of bullish news items.

First, the _Wall Street Journal _reported that several PC makers are working with the Arm-based Nvidia-**Mediatek **system-on-chip (SoC), which could give Arm a greater share of the PC market.

Second, the company got a price target upgrade from Bank of America. As a result, the stock was up 4.4% as of 11:14 a.m. ET.

Image source: Getty Images.

Arm gets a boost in PCs

The big news on Arm today was the report out of the Wall Street Journal. Arm has traditionally lagged behind the x86 platform used by **Intel **and AMD in PCs, but Dell, Lenovo, and others are using Nvidia chips for new laptops, which are expected to go on sale in the second half of the year.

The move marks Nvidia’s return to the PC market, and, since Arm is a close partner of Nvidia, Arm should benefit from its success.

Additionally, Bank of America raised its price target on Arm from $135 to $140, though it maintained a neutral rating on the stock. The bank noted that the shift in AI from training to inference would favor the consumption of CPUs, which should benefit Arm.

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NASDAQ: ARM

Arm Holdings

Today’s Change

(4.03%) $4.99

Current Price

$128.77

Key Data Points

Market Cap

$131B

Day’s Range

$124.25 - $131.29

52wk Range

$80.00 - $183.16

Volume

166K

Avg Vol

5.7M

Gross Margin

94.84%

What’s next for Arm

Arm is coming off a solid earnings report that included a doubling of royalty revenue in the data center category. Arm is likely to benefit from increased demand for CPUs in AI, and the push into the PC market looks like a win as well, as Arm expects to grow market share at the edge, or where consumers use devices.

While the AI stock is expensive, there’s a lot of growth potential for the business as the AI opportunity expands.