Arm Holdings (ARM) Notches All-Time High as Nvidia Showcases New Tech

Arm Holdings plc (NASDAQ:ARM) is one of the 10 Stocks Entering June on Fire.

Arm Holdings kicked off the first day of the month soaring to a new all-time high, as investors resorted to a flurry of positive developments, including Nvidia Corp.’s launch of new chips built on its architecture and two analysts’ optimistic rating for its stock.

In intra-day trading, Arm Holdings plc (NASDAQ:ARM) climbed to its highest price of $421.69 before paring gains to end the session just up by 15.73 percent at $408.85 apiece.

Photo from Arm Holdings

Over the weekend, Nvidia Corp. Chairman and CEO Jensen Huang unveiled the RTX Spark, a new product built on Arm Holdings plc’s (NASDAQ:ARM) platform, calling it the “most efficient PC chip ever created.”

Nvidia said that RTX Spark powers the world’s first Windows PCs, purpose-built personal agents, featuring one petaflop of AI performance, industry-leading power efficiency, full-stack Nvidia AI and graphics technology, and up to 128 GB of unified memory.

Following the news, Mizuho Securities upgraded its price target for Arm Holdings plc (NASDAQ:ARM) by 18 percent to $425 from $360 previously and maintained its “outperform” rating. The new figure also represented a 4 percent upside potential from its latest closing price.

Meanwhile, the chipmaker also received an optimistic rating from Mad Money host and former hedge fund manager Jim Cramer, saying that the firm still holds the potential to grow further.

“The chip design company had been putting up some pretty good numbers. But more [importantly] it announced that rather than just licensing its technology to other chip makers, Arm would also make its own CPUs. Big change, right when we started hearing that these new AI agents needed a ton of advanced CPUs to operate.”

While we acknowledge the risk and potential of ARM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ARM and that has 10,000% upside potential, check out our report about the cheapest AI stock.

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