Why Arm Holdings Stock Soared Higher This Week

Source The Motley Fool

Shares of Arm Holdings (NASDAQ: ARM) were trading higher this week. The company's stock gained 8.9% as of market close but was up as much as 13% earlier in the week. The leg up comes as the S&P 500 and Nasdaq 100 were up 1.7% and 1.6%, respectively.

President Trump's new AI infrastructure initiative, Project Stargate, helped boost AI stocks across the board, but Arm's relationship with Oracle could mean it benefits more than most.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. See the 10 stocks »

Project Stargate will bring billions of dollars to American AI

Oracle CEO Larry Ellison, along with several other key players in artificial intelligence (AI), was with President Trump as he announced Project Stargate, an initiative that will bring $500 billion in private investment into the AI industry. President Trump hopes to accelerate the building of AI-related infrastructure.

This was good news for Arm. Apart from the general boost most AI stocks received, investors were especially keen on Arm given its close relationship with Oracle and by proxy, the White House. Arm's CEO appeared on CNBC soon after the project's announcement discussing how his company would benefit.

Arm plans to expand operations

This comes just after it was revealed the company is planning on significantly upping the fees it charges clients to license its critical technology, hopefully leading to a boost in its bottom line. Beyond this, however, Arm is looking into making its own AI chips in-house, a potentially highly lucrative operation and one that it currently does not do. News of this was received positively, sending the company's stock higher.

Don’t miss this second chance at a potentially lucrative opportunity

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

  • Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $381,744!*
  • Apple: if you invested $1,000 when we doubled down in 2008, you’d have $42,357!*
  • Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $531,127!*

Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.

Learn more »

*Stock Advisor returns as of January 21, 2025

Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Oracle. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
After the Crypto Crash, Is an Altcoin Season Looming Post-Liquidation?The crypto market remains unsettled two months after the "October 10" liquidation wave, one of its largest ever. Bitcoin's price has erased all its year-to-date gains, quieting prediction
Author  TradingKey
6 hours ago
The crypto market remains unsettled two months after the "October 10" liquidation wave, one of its largest ever. Bitcoin's price has erased all its year-to-date gains, quieting prediction
placeholder
Bitcoin Pauses for Breath Above $92,000 as Bulls Weigh Next Run at $95,000Bitcoin consolidates above $92,000 and the 100-hour SMA as traders eye a breakout toward $96,450 or a potential retracement to $90,500 support.
Author  Mitrade
14 hours ago
Bitcoin consolidates above $92,000 and the 100-hour SMA as traders eye a breakout toward $96,450 or a potential retracement to $90,500 support.
placeholder
Gold Price Forecast: XAU/USD flat lines near $4,200 ahead of US PCE inflation releaseGold price (XAU/USD) trades on a flat note near $4,205 during the early Asian trading hours on Friday. Rising US Treasury yields and upbeat US jobs data cap upside for the precious metal. Traders might prefer to wait on the sidelines ahead of the key US inflation data.
Author  FXStreet
14 hours ago
Gold price (XAU/USD) trades on a flat note near $4,205 during the early Asian trading hours on Friday. Rising US Treasury yields and upbeat US jobs data cap upside for the precious metal. Traders might prefer to wait on the sidelines ahead of the key US inflation data.
placeholder
AUD/USD holds steady above 0.6600; remains close to two-month high ahead of US PCE dataThe AUD/USD pair enters a bullish consolidation phase during the Asian session on Friday and oscillates in a range around the 0.6600 round figure, just below a nearly two-month high, touched the previous day.
Author  FXStreet
15 hours ago
The AUD/USD pair enters a bullish consolidation phase during the Asian session on Friday and oscillates in a range around the 0.6600 round figure, just below a nearly two-month high, touched the previous day.
placeholder
The 2026 Fed Consensus Debate: Not Hassett, It’s About Whether Powell Stays or GoesKevin Hassett, White House National Economic Council Director, is poised to succeed Jerome Powell as the next Federal Reserve Chair. This development signals a potentially more dovish mon
Author  TradingKey
Yesterday 10: 15
Kevin Hassett, White House National Economic Council Director, is poised to succeed Jerome Powell as the next Federal Reserve Chair. This development signals a potentially more dovish mon
goTop
quote