Why Arm Holdings Was on the Rise Today
Shares of the central processing unit (CPU) architecture licensing company Arm Holdings (NASDAQ: ARM) were on the rise Wednesday, up 10.7% at one point before settling into a more modest 5.3% gain on the day. Today's gain built on a strong week after Arm was initiated with an "Outperform" rating by Wells Fargo analysts on Monday and a price target of $70.
That enthusiasm was then bolstered today by last night's Nvidia (NASDAQ: NVDA) conference call in which Nvidia's management had positive things to say about its own Arm-based CPU chip called Grace.
In last night's conference call with analysts, Nvidia management was very bullish on its Arm-based CPU chips called Grace. The company noted the third quarter, in which Nvidia beat revenue expectations by over $2 billion, was the first in which it received any revenue from its Grace-Hopper super chip. Grace-Hopper incorporates the Hopper H100 graphics processing units (GPUs) with Grace, its Arm-based CPU chip. Management noted Grace-Hopper was "ramping into a new multibillion-dollar product line."
Source Fool.com
