Arm Holdings Soars on AI CPU Plans, Data Center Expansion

0:00Armholding shares surged recently on news of their new AI CPU plans, expanding their role in data centers. The company earns most of its cash by licensing chip designs up front and collecting royalties every time customers ship products using that tech. For their last full fiscal year, total revenue reached $4 billion 7 million, with licenses making of $1 billion 800, 39 million in royalties, $2 billion 168 million. That model fueled solid growth in the third quarter of fiscal 2026, ending December 31st, 2025. Revenue climbed 26% to $1 billion, $240 million. Royalties jumped 27% to $737 million, driven by AI demand, data center needs, smartphone upgrades, and compute subsystems. Players piled in, pushing the stock up 16.38% in a single session. It opened at $148.26, hit a high of $166.69 and closed at $100.

1:07$57.7, volume exploded to 29.48 million shares, a big sign of broad participation. From a chart view, arm now sits well above its 20 day and 200 day moving averages around $129 to $131. But its testing resistance between $185 was support down near $100 to $118. Dollars if it pulls back? Fundamentals look strong with AI as a fresh growth driver and the charts show momentum building. The next few trading days will reveal if this sparks a bigger rally or hits a wall. I'm Cory with the story. That's your Derm news today update, AI powered and always on.