Jim Cramer on Arm Holdings: “I Think Rene’s Going to Do a Great Job”

Arm Holdings plc (NASDAQ:ARM) was among Jim Cramer’s stock calls as he suggested that many red-hot stocks can keep making investors money. During the lightning round, a caller asked if the stock is a buy, sell, or hold. In response, Cramer said:

Yeah, we put this on the buy list a couple of days ago for the Charitable Trust, and the stock is up 21 today. I mean, this is the type of thing I’m talking about. You gotta be in… What can I say? I think Rene’s going to do a great job. He’s got a lot of business.

Stock market data. Photo by Burak The Weekender on Pexels

Arm Holdings plc (NASDAQ:ARM) designs and licenses CPU architectures, system IP, and software used across automotive, computing, consumer, and IoT applications. On March 30, Cramer expressed a positive sentiment toward the company’s “first in-house CPU for the data center,” as he said:

We got this huge development last week from Arm Holdings. I’m so glad we can go back and talk about it. This is one of the most important companies in the semiconductor industry. For most of its history, Arm developed key chip architecture, and then it licensed it to various semiconductor makers. They make a little bit of money per, but last week, they unveiled their first in-house CPU for the data center, especially for agentic AI workloads. The stock initially roared on the news, although it’s now given back some, but what hasn’t, including a 5% pullback today, but it’s still up 25% year to date. That’s very unusual for tech now. Arm believes its new chip business could reach $15 billion in annual sales within five years, I think it could be in excess of that, with Meta as the first major customer already. In short, this is no longer just a story about collecting royalties from chip makers that use their technology. The company wants a larger piece of the pie.

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