Why Arm Holdings Stock Rallied 16% Higher This Week

Shares of Arm Holdings (NASDAQ: ARM) climbed sharply higher this week, surging as much as 16.7%, according to data provided by S&P Global Market Intelligence. When the market closed after a short session on Friday, the stock was still up 16.2%.

There were a couple of catalysts that drove the stock higher this week, including robust results by another semiconductor specialist, as well as bullish commentary from a Wall Street analyst.

Earlier this week, Nvidia (NASDAQ: NVDA) reported the results of its fiscal 2024 third quarter (ended Oct. 29.), and its performance confirmed the accelerating demand for processors used for artificial intelligence (AI). The company generated record revenue of $18.1 billion, an increase of 206% year over year and well ahead of management's forecast of $16 billion. The bottom line was equally eye-catching, as diluted earnings per share (EPS) of $3.71 soared 1,274%.

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Source Fool.com