ARM Holdings (ARM) Stock Jumps 15% as Cramer Backs the AI Chip Play

TLDR

• ARM stock is trading near $223, up roughly 15% recently, with a 52-week high of $239.50 and a market cap of $235.76 billion.
• Jim Cramer posted “ARM what a horse” on X, confirming his charitable trust holds the stock and calling it “not up enough.”
• ARM’s fiscal 2026 revenue hit $4.92 billion, up 23%, with record non-GAAP EPS of $0.60 in the March quarter, beating estimates.
• CEO Rene Haas unveiled the AGI CPU in March 2026 — ARM’s first-ever chip, targeting $15 billion in annual revenue by 2031 — sending the stock up 16% in a single session.
• Analysts are broadly bullish, with Sanford C. Bernstein initiating at Outperform with a $300 price target, though a U.S. antitrust probe has added some uncertainty.

Cramer has been public about his ARM position for a while. He told CNBC viewers to buy the stock back in January, said it was “not up enough,” and pointed to humanoid robotics as a reason the company’s numbers will get “gigantic.” That’s a specific thesis, not just cheerleading.

Arm Holdings plc American Depositary Shares, ARM

ARM was trading around $223 at last check, close to its 52-week high of $239.50. The stock has roughly doubled in 2026.

The Numbers Behind the Noise

The reason Cramer’s comment resonated is that the fundamentals backed it up. ARM’s fiscal 2026 revenue came in at $4.92 billion, up 23% year over year. That marks the third straight year of 20%-plus growth. Non-GAAP EPS hit a record $0.60 in the March quarter, ahead of the Wall Street consensus of $0.58.

That shift is the core of ARM’s story right now. For years, it was a smartphone royalty business. Now Haas is saying data centers will surpass smartphones as ARM’s largest revenue source within a few years.

The AGI CPU Changes the Math

The bigger news came on March 24, when Haas took the stage in San Francisco and announced something ARM has never done in its 35-year history: it built its own chip.

The product is called the AGI CPU, designed specifically for AI inference in data centers. ARM says it will generate roughly $15 billion in annual revenue by 2031 — about six times the company’s entire 2025 revenue. Haas projected total company revenue of $25 billion by that same year.

Partners on the announcement included Meta, OpenAI, Cloudflare, and SK Telecom. The stock jumped 16% that session.

Wall Street took notice. Sanford C. Bernstein started coverage with an Outperform rating and a $300 price target. Rosenblatt lifted its target to $270. TD Cowen went to $265. Of 27 analysts covering the stock, 20 rate it a Buy.

The valuation is demanding — ARM trades at roughly 265 times trailing earnings — and there are some clouds. Multiple law firms announced securities-fraud investigations tied to reports of a U.S. antitrust probe into ARM’s licensing model. CEO Haas also acknowledged on the Q4 call that smartphone royalty weakness remains a near-term drag.

Insider sales have continued too. Haas sold around $1.5 million worth of stock in April under a pre-arranged 10b5-1 plan. Insider William Abbey sold $1.49 million worth in May, also under a pre-arranged plan tied to tax withholding from equity awards.

ARM’s 39-analyst consensus sits at a Buy rating with an average price target of $229, per Stock Analysis, roughly in line with where the stock is trading today.

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