Arm Holdings (NASDAQ: ARM) is a key player in the global semiconductor industry. It designs, develops, and licenses its intellectual property (IP) to major chipmakers and original equipment manufacturers (OEMs),

One day after Arm Holdings (NASDAQ: ARM) soared on news of the Stargate artificial intelligence (AI) project, shares of the chip design company known for its energy-efficient CPU architecture were pulling back.

Arm stock is expensive, but the company has a clear competitive advantage in its industry. Its power-efficient chips have 99% market share in the smartphone market, and it's gaining share in the data center segment for similar reasons.

Arm Holdings (NASDAQ:ARM) is another semiconductor company with large 2025 returns; not much of a surprise. Semiconductor firms dominated the charts last year as well. ARM stock has doubled its stock price in just the past year. This is mostly because they’ve had very strong quarter-over-quarter growth and bullish revenue forecasts.

The market's reaction to the news about Project Stargate was very positive with ARM's stock skyrocketing by as much as 16%. Read my analysis.

Shares of Arm Holdings (NASDAQ: ARM) are soaring Wednesday. The leap comes as the S&P 500 and the Nasdaq Composite gained 0.7% and 1.3%, respectively. Arm is benefiting from the recent announcement of a new artificial intelligence (AI) investment initiative from the Trump administration as well as a rollback of AI regulations.

Shares of Arm Holdings (NASDAQ:ARM) soared 14% today after CEO Rene Haas remarked on CNBC about its role in the massive AI 'Stargate' projects announced by President Trump and SoftBank (TYO:9984)'s commitment to its stake in the company.