Arm Holdings shares rise 17% as CEO Rene Haas backs $2B chip goal

Arm Holdings (NASDAQ:ARM) shares climbed as much as 16.8 percent to $322 on Monday, marking a fifth straight day of gains. The rally followed remarks from CEO Rene Haas, who expressed heightened confidence in the company's ability to meet its revenue objectives for its emerging chip segment.

Speaking with CNBC's Jim Cramer, Haas described demand for CPUs, GPUs, and memory from data centers, automotive robotics, and edge computing as "off the charts." He cautioned that supply chains may face difficulties meeting this surge, citing constraints in wafers, substrates, testing equipment, and memory.

Haas stated that his confidence in Arm Holdings hitting its $2 billion revenue target for the emerging chip business has grown since the company first provided visibility to that figure in May. "Here I am in September, and what I can tell you is, Jim, I'm more confident today than I was on that July earnings," he said. "We're feeling good about it. We're feeling really good about it."

The company originally set the $2 billion goal during its May earnings call, which was double the $1 billion target outlined when it first announced its custom CPU in March. Management noted in July that its confidence in securing necessary supply had improved.

Insider Monkey data indicates that 52 hedge funds held positions in the stock during the previous quarter, an increase from 46 in the first quarter. Their combined holdings rose by 142.8 percent to $3.4 billion from $1.4 billion over the same period.

Arm Holdings is scheduled to report results for the second quarter of fiscal year 2027 on November 4, 2026. The company expects total revenues for that period to land at a midpoint of $1.38 billion, plus or minus $50 million. Non-GAAP diluted earnings per share are projected at a midpoint of $0.47, plus or minus $0.04.