TLDR
- ARM Holdings shares are hovering around $223, reflecting approximately 15% recent gains, approaching its 52-week peak of $239.50 with a market capitalization of $235.76 billion.
- Television personality Jim Cramer tweeted “ARM what a horse” on X, revealing his charitable trust maintains a position and suggesting the stock remains undervalued.
- Fiscal 2026 results showed ARM generated $4.92 billion in revenue, marking 23% growth, while non-GAAP earnings per share reached a record $0.60 in the March quarter, surpassing analyst projections.
- In March 2026, CEO Rene Haas introduced the company’s inaugural chip—the AGI CPU—designed for AI workloads with projections of $15 billion in yearly revenue by 2031, triggering a 16% single-day stock surge.
- Wall Street sentiment remains predominantly positive, with Sanford C. Bernstein launching coverage at Outperform with a $300 target, despite emerging concerns around a U.S. antitrust investigation.
Jim Cramer’s four-word message on X this week regarding ARM Holdings was direct and memorable: “ARM what a horse.” Brief, forceful, and particularly noteworthy given his disclosure of owning shares through his charitable trust—the comment gained traction quickly.
Cramer hasn’t been shy about his ARM investment. During a January CNBC appearance, he recommended viewers purchase the stock, characterized it as undervalued, and highlighted humanoid robotics as a catalyst that would drive the company’s financials to become “gigantic.” This represents a focused investment rationale rather than mere promotional commentary.
Arm Holdings plc American Depositary Shares, ARM
Shares were changing hands near $223 during recent trading, positioned close to the 52-week peak of $239.50. The equity has approximately doubled throughout 2026.
Financial Performance Supporting the Momentum
The impact of Cramer’s remarks stems from ARM’s underlying business performance. Fiscal year 2026 revenue totaled $4.92 billion, representing 23% year-over-year expansion. This achievement marks the third consecutive year ARM has delivered growth exceeding 20%. The company’s non-GAAP earnings per share reached an all-time high of $0.60 during the March quarter, topping Wall Street’s $0.58 consensus forecast.
Data center segment revenue more than doubled year over year, based on Bank of America’s analysis. CEO Rene Haas stated during a February presentation: “Our data center business is exploding.”
This transformation represents the central narrative driving ARM’s current trajectory. Historically recognized as a smartphone royalty-based enterprise, Haas now indicates data centers will eclipse smartphones as ARM’s primary revenue generator within the coming years.
The AGI CPU Represents a Strategic Inflection Point
The most significant development emerged on March 24, when Haas appeared at a San Francisco event to unveil something unprecedented in ARM’s 35-year existence: the company’s first proprietary semiconductor.
Dubbed the AGI CPU, this processor targets AI inference applications within data center environments. ARM forecasts this single product will contribute approximately $15 billion in annual revenue by 2031—roughly six times the organization’s complete 2025 revenue figure. Haas projected overall company revenue reaching $25 billion by that timeframe.
Launch partners included Meta, OpenAI, Cloudflare, and SK Telecom. Shares rallied 16% during that trading session.
Wall Street analysts responded enthusiastically. Sanford C. Bernstein initiated coverage with an Outperform recommendation and $300 price objective. Rosenblatt elevated its target to $270. TD Cowen established a $265 target. Among 27 analysts tracking the stock, 20 maintain Buy ratings.
Valuation metrics appear stretched—ARM currently trades at approximately 265 times trailing earnings—and certain headwinds exist. Several law firms announced securities-fraud investigations connected to reports of a U.S. antitrust inquiry examining ARM’s licensing practices. CEO Haas also acknowledged during the Q4 earnings call that smartphone royalty softness continues to present near-term challenges.
Insider transactions have persisted as well. Haas disposed of approximately $1.5 million in shares during April through a pre-established 10b5-1 trading plan. Insider William Abbey sold $1.49 million worth in May, similarly through a pre-arranged plan associated with tax obligations from equity compensation.
The consensus among 39 analysts stands at a Buy rating with an average price objective of $229, according to Stock Analysis, closely aligned with current trading levels.
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