In the span of less than a week, shares of Arm Holdings (NASDAQ: ARM) skyrocketed from $77 to nearly $149 as of Monday's close, almost doubling in value. The catalyst behind this strong movement was the company's earnings report and promising guidance.

While the results were good, were they really good enough to warrant this kind of move in Arm's valuation, or is this simply proof that there is a bubble when it comes to artificial intelligence (AI) stocks?

What really ignited shares of Arm last week were its third-quarter results, which covered the last three months of the year. The company's adjusted earnings per share (EPS) of $0.29 came in better than the $0.25 analysts were expecting. On the top line, revenue of $824 million was far higher than expectations of $761 million.

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Source Fool.com