Jim Cramer Says He Was 'Huge Backer' Of This Chip Stock But Admits To Being 'Stunned' By Whopping Surge On Q3 Results

Zinger Key Points
  • Arm reported record Q3 royalty revenue and better than expected license and other revenue.
  • KeyBanc Capital Markets analyst John Vinh raised the price target for the stock from $75 to $120.

Arm Holdings plc ARM shares climbed over 25% in premarket after the British chipmaker reported third-quarter results that exceeded expectations, and CNBC Mad Money host Jim Cramer on Thursday lauded the company for its quarterly performance.

What Happened: “I have been a huge backer of Arm Holdings but even I am stunned by this move….,” said Cramer in a post on X, formerly Twitter.

The stock picker has been recommending Arm in a few installments of the CNBC Lightning Round segment since the company went public on Sept. 14, 2023. He also interviewed Arm CEO Rene Haas in early November when the company reported its maiden quarterly results as a public company.

See Also: Best Technology Stocks Right Now

Why It’s Important: Cambridge, England-based Arm designs CPU cores that implement the ARM architecture family of instruction sets. The company’s third-quarter revenue growth of 14% came on the back of record royalty revenue and better-than-expected license and other revenue.

Royalty revenue, which made up 57% of the total revenue, benefited from a strong recovery in the
smartphone market and increasing penetration of Armv9.

Following the result, KeyBanc Capital Markets analyst John Vinh raised the price target for the stock from $75 to $120. The analyst said strong AI design traction contributed to the licensing upside.

In premarket, the stock climbed 27.66% to $98.31, according to Benzinga Pro data.

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