ARM Holdings (ARM) Stock Surges 15% Following Cramer’s Endorsement and Record Earnings

Key Takeaways

• ARM Holdings stock hovers around $223, climbing approximately 15% in recent trading, nearing its 52-week peak of $239.50 with a market capitalization exceeding $235 billion.
• CNBC’s Jim Cramer tweeted “ARM what a horse” on X, revealing his charitable trust maintains a position and believes the stock remains undervalued.
• Fiscal 2026 results showed revenue reaching $4.92 billion, representing 23% year-over-year growth, while non-GAAP earnings per share touched a record $0.60 in Q4, exceeding analyst expectations.
• In March 2026, CEO Rene Haas introduced ARM’s inaugural chip, the AGI CPU, with projections of $15 billion in annual revenue by 2031, triggering a 16% single-day stock surge.
• Wall Street remains optimistic, with Sanford C. Bernstein establishing coverage at Outperform and a $300 target, despite ongoing antitrust scrutiny that could pose headwinds.

Cramer hasn’t been shy about his ARM conviction. In January, he urged CNBC audiences to accumulate shares, arguing the valuation hadn’t caught up to reality and citing humanoid robotics as a catalyst that would make the company’s financials “gigantic.” This wasn’t generic hype — it was a targeted investment thesis.

Arm Holdings plc American Depositary Shares, ARM

Shares were changing hands near $223 at recent check-in, approaching the 52-week zenith of $239.50. Year-to-date performance shows ARM has approximately doubled in 2026.

Financial Performance Validates the Momentum

Cramer’s endorsement resonated precisely because ARM’s underlying business performance justified the enthusiasm. Full fiscal 2026 revenue reached $4.92 billion, marking 23% expansion from the prior year. This represents the third consecutive year of growth exceeding 20%. The March quarter delivered record non-GAAP earnings per share of $0.60, surpassing the Street’s $0.58 consensus.

This transformation represents the heart of ARM’s evolution. What began as a smartphone intellectual property licensing model is rapidly pivoting. Haas now forecasts data centers will eclipse smartphones as the company’s primary revenue generator within several years.

ARM’s First-Ever Chip Rewrites Growth Expectations

The watershed moment arrived March 24, when Haas unveiled something unprecedented in ARM’s 35-year existence: the company’s own silicon.

Dubbed the AGI CPU, this chip targets AI inference workloads in hyperscale data centers. Management projects this single product line will deliver approximately $15 billion in annual revenue by 2031 — roughly six times ARM’s entire 2025 top line. Haas outlined a path to $25 billion in total company revenue by that same timeframe.

Strategic collaborators announced alongside the launch included Meta, OpenAI, Cloudflare, and SK Telecom. Shares rocketed 16% during that trading session.

Analyst upgrades followed swiftly. Sanford C. Bernstein initiated with an Outperform designation and $300 price objective. Rosenblatt elevated its target to $270. TD Cowen moved to $265. Among 27 covering analysts, 20 maintain Buy-equivalent ratings.

The valuation carries risk — ARM trades at roughly 265 times trailing twelve-month earnings — and complications exist. Several law firms have launched securities-fraud inquiries related to reports of a Department of Justice antitrust investigation into ARM’s licensing practices. During the Q4 earnings call, Haas also noted smartphone royalty softness continues to pressure near-term results.

Insider transactions have persisted as well. Haas divested approximately $1.5 million in stock during April through a predetermined 10b5-1 trading arrangement. Director William Abbey sold $1.49 million worth in May, also via a pre-scheduled plan associated with tax obligations from equity compensation.

The 39-analyst consensus from Stock Analysis shows a Buy rating with a mean price target of $229, essentially aligned with current trading levels.

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