Arm Holdings sees growth amid Amazon's chip revenue surge
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 18 2026
0mins
Should l Buy ARM?
Source: NASDAQ.COM
Arm Holdings PLC's stock rose by 3.01% and reached a 20-day high, reflecting positive market conditions.
The recent earnings report from Amazon highlighted a significant surge in custom chip revenue, particularly from its Graviton and Trainium chips, which achieved over $10 billion in annual revenue. This growth has directly benefited Arm, as its data center royalty revenue doubled in the last quarter, and projections indicate that data center revenue could surpass smartphone revenue in the next three years. This positions Arm favorably in the expanding AI market, driven by increasing demand for its CPUs.
The implications of this growth are substantial for Arm, as it solidifies its role in the AI sector and enhances its competitive position in the cloud computing market. With analysts projecting continued growth in data center revenue, Arm is well-positioned to capitalize on the rising demand for AI-driven technologies.
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Analyst Views on ARM
Wall Street analysts forecast ARM stock price to rise
24 Analyst Rating
19 Buy
4 Hold
1 Sell
Strong Buy
Current: 120.100
Low
120.00
Averages
160.58
High
201.00
Current: 120.100
Low
120.00
Averages
160.58
High
201.00
About ARM
Arm Holdings plc is engaged in operating a global computing platform. It architects, develops, and licenses high-performance and energy-efficient Arm compute platforms. The Company’s principal operations and activities are the licensing, marketing, research and development of central processing unit (CPU) design intellectual property (IP), graphics processors, system IP, market optimized platform IP, and associated software, tools and other related services. Its complementary products include GPU and NPU accelerators, interconnect, and others. Its primary product offerings are CPU products that address diverse performance, power, and cost requirements. It offers a family of GPU and NPU products providing efficient computing acceleration and an optimal visual experience across a wide range of devices. Its CPU, GPU, and System IP products integrated into a foundational compute platform optimized for a specific end market.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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