In This Article:
Shares of Arm Holdings (NASDAQ: ARM) were trading higher this week. The company's stock gained 8.9% as of market close but was up as much as 13% earlier in the week. The leg up comes as the S&P 500 and Nasdaq 100 were up 1.7% and 1.6%, respectively.
President Trump's new AI infrastructure initiative, Project Stargate, helped boost AI stocks across the board, but Arm's relationship with Oracle could mean it benefits more than most.
Project Stargate will bring billions of dollars to American AI
Oracle CEO Larry Ellison, along with several other key players in artificial intelligence (AI), was with President Trump as he announced Project Stargate, an initiative that will bring $500 billion in private investment into the AI industry. President Trump hopes to accelerate the building of AI-related infrastructure.
This was good news for Arm. Apart from the general boost most AI stocks received, investors were especially keen on Arm given its close relationship with Oracle and by proxy, the White House. Arm's CEO appeared on CNBC soon after the project's announcement discussing how his company would benefit.
Arm plans to expand operations
This comes just after it was revealed the company is planning on significantly upping the fees it charges clients to license its critical technology, hopefully leading to a boost in its bottom line. Beyond this, however, Arm is looking into making its own AI chips in-house, a potentially highly lucrative operation and one that it currently does not do. News of this was received positively, sending the company's stock higher.
Don’t miss this second chance at a potentially lucrative opportunity
Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.
On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:
-
Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $381,744!*
-
Apple: if you invested $1,000 when we doubled down in 2008, you’d have $42,357!*
-
Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $531,127!*
Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.
*Stock Advisor returns as of January 21, 2025
Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Oracle. The Motley Fool has a disclosure policy.
Why Arm Holdings Stock Soared Higher This Week was originally published by The Motley Fool