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
Bitcoin Briefly Falls Below $76,000: Will Powell Staying on Board Curb Rally? Fed maintains interest rates, Bitcoin price falls below $76,000 as Powell's stay may hinder rebound.On April 30 (GMT+8), Bitcoin ( BTC) narrowed its losses and returned above $76,000, cur
Author  TradingKey
6 hours ago
Fed maintains interest rates, Bitcoin price falls below $76,000 as Powell's stay may hinder rebound.On April 30 (GMT+8), Bitcoin ( BTC) narrowed its losses and returned above $76,000, cur
placeholder
Brent Oil Breaks Through $120 Mark, Strait of Hormuz Deadlock Continues to Ferment, How Will Trump’s Choice Sway Oil Price Direction?Hopes for a resolution to the U.S.-Iran deadlock are fading, and the oil price rally continued during the Asian session. On Thursday, dampened by pessimistic news regarding peace talks, B
Author  TradingKey
8 hours ago
Hopes for a resolution to the U.S.-Iran deadlock are fading, and the oil price rally continued during the Asian session. On Thursday, dampened by pessimistic news regarding peace talks, B
placeholder
Today’s Market Recap: Fed Dissent and AI Capex Surges Define Volatile Earnings Week The S&P 500 edged down 0.04% to 7,135.95, while the Nasdaq Composite gained a modest 0.04% to reach 24,673.24. Meanwhile, the Dow Jones Industrial Average declined 0
Author  TradingKey
14 hours ago
The S&P 500 edged down 0.04% to 7,135.95, while the Nasdaq Composite gained a modest 0.04% to reach 24,673.24. Meanwhile, the Dow Jones Industrial Average declined 0
placeholder
Goldman Sachs: Structurally Bullish on Gold to $5,400, But Warns of Short-Term PullbackGoldman Sachs ( GS) 's latest precious metals research report on gold ( XAUUSD) price trends presents a "structurally bullish, tactically cautious" dual outlook, maintaining its year-end
Author  TradingKey
Yesterday 10: 13
Goldman Sachs ( GS) 's latest precious metals research report on gold ( XAUUSD) price trends presents a "structurally bullish, tactically cautious" dual outlook, maintaining its year-end
placeholder
UAE Announces Exit From OPEC. Wall Street Warns: Medium-Term Oil Prices Face Downside RisksThe United Arab Emirates (UAE) has officially announced that it will formally withdraw from the Organization of the Petroleum Exporting Countries (OPEC) and the OPEC+ alliance on May 1.Bl
Author  TradingKey
Yesterday 06: 15
The United Arab Emirates (UAE) has officially announced that it will formally withdraw from the Organization of the Petroleum Exporting Countries (OPEC) and the OPEC+ alliance on May 1.Bl
goTop
quote