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arm holdings (arm 10.36%) The stock soared in trading Monday, rising 10.1% as of 1:15 p.m. ET, according to data from S&P Global Market Intelligence.
Before the market opened, it was announced that the semiconductor technology company had entered into a new partnership to advance artificial intelligence and other technologies in the communications industry. Bullish reports from analysts are also pushing up the stock price. The company’s stock price is currently up 132% since the close of trading on the day of its initial public offering (IPO) last September.
Arm joins powerful new alliance
This year’s Mobile World Congress started on Monday and runs through Thursday, and it’s already delivered some promising news for Arm investors. The semiconductor design company has entered into a new partnership with. Nvidia, microsoft, Amazon, Softbanksamsung, nokiaand Ericsson Powering Radio Area Network (RAN) and AI technologies in the telecommunications industry.
The new partnership, named the AI-RAN Alliance, aims to improve efficiency across the communications industry and pave the way for new innovations.
“The AI-RAN Alliance brings together industry-shaping companies with expertise from silicon to software to realize the promise of ubiquitous AI and 6G,” said Ronnie Vashishta, senior vice president, Nvidia Telecom. states.
It will likely be years before the results of this new partnership come to market, but the addition of Arm is definitely a bullish sign for the company.
Analysts see further upside potential
Rosenblatt Securities Analyst hans mosesmann He issued a bullish note on Arm stock on Monday, raising his one-year price target from $140 per share to $180 per share. Mosesman believes royalty fee trends will be a positive catalyst for Arm, and expects AI-related licenses to help drive a significant increase in the percentage the company can command.
In addition to the strong business development, the analyst believes Arm’s business needs a higher valuation multiple than it currently has. Rosenblatt’s new target is about 23% above the current stock price.
John Mackey, former CEO of Amazon subsidiary Whole Foods Market, is a member of the Motley Fool’s board of directors. Keith Noonan has no position in any stocks mentioned. The Motley Fool has positions in and recommends Amazon, Microsoft, and Nvidia. The Motley Fool recommends the following options: His January 2026 $395 long call on Microsoft and his January 2026 $405 short call on Microsoft. The Motley Fool has a disclosure policy.
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