Shares of Arm Holdings (NASDAQ: ARM) climbed sharply higher on Thursday, rising as much as 8.8%. As of 12:30 p.m. ET, the stock was still up 8.3%.

The catalyst that drove the semiconductor specialist higher was an upgrade and some bullish commentary from a Wall Street analyst.

Daiwa Securities analyst Louis Miscioscia upgraded Arm Holdings to outperform (buy) from neutral (hold) while assigning a $130 price target. That represents potential gains for investors of 21% compared to Wednesday's closing price. The analyst cited the recent sell-off of artificial intelligence (AI) stocks and Arm's recent price movement, calling it "a few interesting and volatile quarters."

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Source Fool.com