Arm Holdings (ARM) Stock Jumps 4% After IBM Partnership and $2B CPU Orders
TLDR
- ARM stock climbed 3.93% in regular trading to $251.06, then added another 4.76% in after-hours to reach $263
- The rally followed Armโs announcement of an expanded partnership with IBM to bring Arm architecture to IBM Z and LinuxONE mainframe systems
- Armโs new AGI CPU, aimed at AI data centers, has already booked over $2 billion in future orders
- Raymond James raised its price target on ARM to $641 from $565, maintaining an Outperform rating
- ARM has gained 79% over the past 12 months and carries a market cap of around $268 billion
Arm Holdings stock had a strong Wednesday, closing up 3.93% at $251.06 before extending gains in after-hours trading to $263, a further 4.76% move.
Arm Holdings plc American Depositary Shares, ARM
The catalyst was an expanded collaboration with IBM announced earlier this week. Under the deal, IBM will bring Arm architecture to future IBM Z and LinuxONE mainframe systems, creating the first dual-architecture processor from the partnership.
Mohamed Awad, Armโs EVP of Cloud AI, explained that each processor core will natively execute both IBM and Arm instructions. This allows Arm-native Linux environments to run alongside z/OS and existing Linux applications on the same hardware.
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