Arm Stock Jumps 14% as Nvidia Launches Arm-Based AI PC and Data Center Chips

TLDR

• Arm stock jumped over 14% intraday after Nvidia unveiled two new chips built on Arm architecture at Computex in Taipei
• Nvidia’s RTX Spark AI PC chip was co-designed with MediaTek and targets premium Windows laptops and desktops, launching this fall
• Nvidia’s Vera data center processor, also Arm-based, is set to ship in Q3 2026
• Mizuho raised its price target on Arm to $425 from $360, keeping an Outperform rating
• Arm reported Q4 FY2026 revenue of $1.49 billion, up 20% year-over-year, with data center royalties more than doubling

Arm Holdings (ARM) stock jumped more than 14% intraday on June 1 after Nvidia used its Computex keynote in Taipei to announce two new chips built on Arm architecture. The stock had already more than tripled in value this year before the announcement.

Arm Holdings plc American Depositary Shares, ARM

Nvidia unveiled the RTX Spark Superchip and the Vera data center processor. Both run on Arm-based designs. Under Arm’s royalty model, every chip shipped puts money in Arm’s pocket.

RTX Spark is a new AI PC processor developed in collaboration with MediaTek. Nvidia said the partnership contributed to the chip’s power efficiency, performance and connectivity.

More than 30 laptop and desktop designs from Microsoft, Dell, HP, Asus, Lenovo and MSI are expected to launch this fall using RTX Spark. That’s a wide rollout across the PC market.

The Vera processor targets data centers and is set to ship in Q3 2026. Data center royalties for Arm more than doubled year-over-year in its most recent quarterly results.

MediaTek stock gained more than 5% in Taiwan trading after the announcement. AMD and Qualcomm were both lower in premarket trading, with Nvidia’s push into PCs seen as a competitive threat.

Jensen Huang’s Vision for AI PCs

During his keynote, Nvidia CEO Jensen Huang laid out a vision where AI agents run complex tasks directly on PCs — searching files, doing research, answering queries — without leaning on cloud infrastructure.

Arm CEO Rene Haas is scheduled to deliver his own Computex keynote on Tuesday, where investors will be watching for more details on the company’s AI strategy.

Arm’s Recent Financial Results

Arm posted Q4 FY2026 revenue of $1.49 billion, up 20% year-over-year. Non-GAAP EPS came in at $0.60.

Licensing revenue climbed 29% to $819 million. Royalty revenue rose 11% to $671 million. Full-year FY2026 revenue hit $4.92 billion, up 23%.

CEO Rene Haas said committed customer demand for Arm’s AGI CPU had grown to over $2 billion across fiscal 2027 and 2028 — double what was cited at the product’s launch.

Arm has set a target of $15 billion in AGI CPU revenue by FY2031. The broader CPU market opportunity is estimated at over $100 billion by 2030.

Mizuho raised its Arm price target to $425 from $360 following the Computex announcements, maintaining an Outperform rating. The brokerage pointed to resilient smartphone demand and growth from cloud, AI and custom chip deployments.

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