Shares of Arm Holdings PLC (NASDAQ:ARM) are trending on Wednesday night.
The British semiconductor and software design company’s stock climbed 4.76% to $263 in after-hours trading on Wednesday.
In the regular session, ARM was up 3.93%, closing at $251.06, according to Benzinga Pro data.
Rally Follows Arm’s Partnership Announcement With IBM
The rally follows Arm’s announcement of an expanded collaboration with IBM (NYSE:IBM) earlier this week.
According to a blog written by Mohamed Awad, Arm’s executive vice president of Cloud AI, IBM will bring Arm architecture to future IBM Z and LinuxONE mainframe systems under the expanded collaboration, marking the first dual-architecture processor from the partnership.
IBM Z and LinuxONE are enterprise-grade server families designed for security, large-scale operations, and mission-critical computing. However, they mainly differ in the operating systems and workloads they are licensed to run.
“Each processor core is designed to natively execute both IBM and Arm instructions,” Awad wrote, letting Arm-native Linux environments run alongside z/OS and existing Linux applications.
What You Should Know
The expanded collaboration comes after Arm reported stronger-than-expected first-quarter results in late July.
The company beat analysts’ expectations for both revenue and earnings per share. Arm reported quarterly earnings of 45 cents per share, compared with the 40-cent consensus estimate. Its revenue of $1.29 billion also exceeded the $1.26 billion forecast by analysts.
Arm is also a co-development partner of Meta (NASDAQ:META) on the Arm AGI CPU, marking Arm’s first self-designed data center chip after 35 years as a pure licensing business.
Raymond James raised its price target on Arm to $641 from $565 on Tuesday, maintaining an Outperform rating.
Trading Metrics, Technical Analysis
Arm Holdings has a market capitalization of approximately $268.13 billion. Its stock has traded between a 52-week high of $452.61 and a 52-week low of $100.02.
ARM has a Relative Strength Index (RSI) of 43.79.
Over the past 12 months, the large-cap tech stock has gained 79%.
Currently, ARM is trading at 42.83% of its 52-week range.
Benzinga’s Edge Stock Rankings indicate that Arm Stock is experiencing long-term upward movement along with medium and short-term consolidation.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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