Arm’s shares jump 15.8% after unveiling in-house chip projected to drive $15B revenue
Arm unveiled its first in-house AI server chip, projecting $15 billion in revenue by 2031, and saw its stock surge 15.8% to $156.36, its biggest one-day gain since April. Raymond James upgraded Arm to outperform and two other analysts lifted price targets with 10.7% short interest.
1. In-House Chip Launch
Arm unveiled its first self-designed AI server chip, marking a strategic move into in-house semiconductor development. Management forecasts the new chip will generate $15 billion in revenue by 2031 as it targets data center customers with enhanced performance and energy efficiency.
2. Stock Reaction
Shares surged 15.8% to $156.36, representing the largest daily gain since April, and have climbed 42% year-to-date as the stock broke above its 200-day moving average resistance level.
3. Analyst Upgrades
Raymond James upgraded Arm to outperform with a $166 price target, while two additional analysts also raised their valuations in response to the company’s expanded business model.
4. Market Dynamics
Short sellers account for 10.7% of available float, and options volume has spiked with a put/call open interest ratio of 1.52, signaling heightened speculative activity around the stock’s next moves.