Arm Holdings (ARM) Surges 2.00% as Qualcomm Pact and AI Push Fuel 14.13% 7-Day Rally

Arm Holdings (ARM) shares rose 2.00% on Monday, extending their seven-day winning streak with a cumulative gain of 14.13%. The stock hit an intraday high of 3.06% above its previous close, reaching its highest level since October 2025. The surge reflects renewed investor confidence driven by strategic business developments and institutional support.

A pivotal catalyst emerged as Qualcomm confirmed its adoption of Arm’s v9 architecture for next-generation PC and smartphone chips. Despite ongoing legal disputes, the partnership reinforced Arm’s market position, validating its technological leadership in mobile chip design. Analysts highlighted that the collaboration could boost royalty revenue and secure Arm’s role in Qualcomm’s future product roadmap, though unresolved litigation remains a risk.

Arm’s launch of the Lumex AI platform further fueled optimism. Optimized for artificial intelligence applications, the platform aligns with the industry’s shift toward edge computing and on-device AI capabilities. Analysts noted that the move positions Arm to expand its royalty base by enabling advanced AI features in premium devices, particularly in consumer electronics and enterprise markets.

Institutional investors also signaled confidence, with major firms increasing their stakes in late September. Concurrently, brokerages raised price targets for ARM stock, averaging $178.00 as of September 12. Analysts from Simply Wall St. and Motley Fool cited the Lumex platform and Qualcomm partnership as key growth drivers, anticipating improved revenue visibility and market share gains.

Arm’s strategic expansion into AI, automotive, and data center markets underscores its efforts to diversify revenue beyond smartphones. The company aims to capture growth in high-margin sectors such as autonomous driving systems and energy-efficient server chips. Analysts emphasized that successful monetization of these segments will be critical to achieving long-term financial targets, including $7.4 billion in revenue by 2028.

While legal uncertainties with Qualcomm persist, the continued collaboration suggests both parties prioritize business over litigation. Market participants remain divided on the dispute’s long-term impact, but Arm’s resilience in maintaining key partnerships has bolstered investor sentiment. The stock’s recent performance reflects a balance of strategic innovation and institutional backing, positioning it as a key player in the AI-driven semiconductor landscape.