How Arm Holdings Stock Gained 25% Last Month

Arguably the world's most important semiconductor expert is back on Wall Street, and its stock chart is never boring. Shares of Arm Holdings (NASDAQ: ARM) rose by 24.8% in November 2023, according to data from S&P Global Market Intelligence. The microchip-architecture researcher started the month with a mix of gives and takes around its own earnings report but sprung to life with the bulk of November's gains when megacustomer Nvidia (NASDAQ: NVDA) published stellar results.

Founded way back in 1990, Arm has entered and exited the stock market a few times over the years. Most recently, the company separated from former parent company (OTC: SFTB.Y) on Sept. 14, 2023. Thus, early November's earnings report was Arm's first business update since the initial public offering (IPO). Analysts and investors weren't sure what to expect; many financial firms were limited by lockup agreements due to their involvement in Arm's $55.5 billion IPO; and the second-quarter report didn't result in a clear-cut market reaction.

The mood changed two weeks later. Nvidia's Q3 filing exceeded every reasonable expectation thanks to tremendous interest in its artificial intelligence (AI) accelerator chips. The H100 accelerator is based on Nvidia's own chip architectures, but the upcoming Grace Hopper "superchip" promises game-changing AI performance by bundling that platform with 144 Arm-based Neoverse chip cores in a single package.

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Source Fool.com