Arm Holdings plc (NASDAQ:ARM) stock gained over 11% on Tuesday as traders lean into fresh AI/data-center optimism tied to the company’s royalty momentum and in-house CPU roadmap, while S&P 500 futures are up 0.6%.
The move follows data center royalty commentary that’s keeping the stock in focus after its latest quarterly update.
Last week, JPMorgan kept an Overweight rating and lifted its price forecast to $255 from $240, citing data center royalty revenue growth of more than 100% year-on-year for a second straight quarter as hyperscalers keep deploying server CPUs.
Also Needham reiterated a Buy rating and a $255 forecast, while flagging potential smartphone headwinds after unit forecasts were cut due to memory cost issues.
With markets open, the broader tape is supportive: the S&P 500 is up 0.56%, the Dow is up 1.20%, and the Nasdaq is up 1.74%.
