Arm Holdings stock surged over 250% in 2026, driven partly by Nvidia's announcement of a new AI chip for Windows PCs built on Arm's architecture.

Arm's stock gained more than 250% in 2026. Nvidia announced a new AI chip for Windows PCs at Computex in early June, designed by Nvidia but built on Arm's architecture, which could boost Arm's royalty and licensing revenue.

In fiscal 2026, Arm's revenue grew 23% and net income grew 14%. In the fourth quarter of fiscal 2026, data center revenue more than doubled year over year, driven by demand for Arm's AI-optimized Armv9 designs across smartphone, cloud, data center, and auto markets.

From fiscal 2026 to fiscal 2029, analysts expect Arm's revenue and net income to grow at CAGRs of 28% and 49%, respectively. However, Arm's stock trades at 337 times this year's earnings and 74 times this year's sales, compared with Nvidia at 23 times earnings and 13 times sales.