Arm Holdings (ARM) Stock Soars 14% Following Nvidia’s Arm-Powered Chip Reveal at Computex

TLDR

• Arm Holdings shares climbed more than 14% during trading after Nvidia revealed two processors utilizing Arm architecture at Computex in Taipei
• The RTX Spark AI PC processor, developed jointly with MediaTek, is designed for high-end Windows computers and will debut this fall
• The Vera data center chip, also built on Arm technology, is scheduled for release in the third quarter of 2026
• Mizuho Securities increased its Arm price target from $360 to $425 while maintaining its Outperform rating
• Arm’s fourth-quarter fiscal 2026 revenue reached $1.49 billion, representing 20% year-over-year growth, with data center royalties surging over 100%

Shares of Arm Holdings (ARM) rallied over 14% during intraday trading on June 1 following Nvidia’s Computex presentation in Taipei, where the company introduced two new processors based on Arm architecture. The stock had already seen remarkable gains this year, tripling in value prior to this latest catalyst.

Arm Holdings plc American Depositary Shares, ARM

At the event, Nvidia presented the RTX Spark Superchip alongside the Vera data center processor. Both chips utilize Arm-based designs. This matters for Arm’s business model: the company collects royalties on every chip manufactured using its architecture.

The RTX Spark represents a new AI PC processor created through a partnership with MediaTek. According to Nvidia, MediaTek’s involvement enhanced the chip’s energy efficiency, overall performance, and connectivity capabilities.

Over 30 laptop and desktop models from major manufacturers including Microsoft, Dell, HP, Asus, Lenovo, and MSI are planned for launch this fall featuring RTX Spark. This represents substantial penetration across the personal computer sector.

The Vera processor is designed for data center applications and is slated for shipment in the third quarter of 2026. Notably, Arm’s data center royalty revenue more than doubled on a year-over-year basis in its latest quarterly report.

MediaTek shares rose over 5% in Taiwan following the news. Meanwhile, AMD and Qualcomm traded lower in premarket activity, as Nvidia’s expansion into the PC space represents direct competition.

Jensen Huang’s AI PC Strategy

In his keynote address, Nvidia CEO Jensen Huang outlined a future where AI agents handle sophisticated operations locally on personal computers — including file searches, research tasks, and query responses — without relying on cloud-based systems.

Arm CEO Rene Haas is set to present his own keynote at Computex on Tuesday, where market observers expect further elaboration on the company’s artificial intelligence initiatives.

Arm’s Latest Quarterly Performance

Arm reported fourth-quarter fiscal 2026 revenue of $1.49 billion, marking a 20% increase compared to the prior year. Non-GAAP earnings per share registered at $0.60.

Licensing revenue increased 29% to reach $819 million. Royalty revenue grew 11% to $671 million. For the full fiscal year 2026, revenue totaled $4.92 billion, up 23%.

CEO Rene Haas revealed that committed customer orders for Arm’s AGI CPU have exceeded $2 billion spanning fiscal years 2027 and 2028 — representing a doubling since the product’s initial announcement.

Arm has established an ambitious goal of $15 billion in AGI CPU revenue by fiscal 2031. The company estimates the total CPU market opportunity will exceed $100 billion by 2030.

Following the Computex reveals, Mizuho Securities upgraded its Arm price target to $425 from $360 while reaffirming its Outperform rating. The firm cited sustained smartphone demand and expansion from cloud computing, artificial intelligence, and custom silicon deployments.

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