Why Arm Holdings Stock Is Trading Higher Today – ARM Holdings (NASDAQ:ARM)

Shares of Arm Holdings PLC (NASDAQ:ARM) are rising Tuesday following reports about a significant AI hardware partnership with OpenAI.

What To Know: OpenAI is in talks with Softbank’s Arm regarding the use of an Arm-designed central processing unit (CPU) with its AI server chip, according to The Information.

The report indicates that the custom computing chip for general computing tasks will be manufactured by TSMC and work alongside the OpenAI-Broadcom chip that was announced on Monday.

Shares of Arm were up more than 2.5% at last check, hovering near all-time highs. The stock has traded within a 52-week range of $80 to $182.88, according to Benzinga Pro.

The new chips are expected to power part of OpenAI’s $1 trillion AI data center buildout, which has a capacity goal of 26 gigawatts. OpenAI and Arm are currently testing early samples of the chips, according to the report.

“Developing our own accelerators adds to the broader ecosystem of partners all building the capacity required to push the frontier of AI,” said Sam Altman, CEO of OpenAI.

How To Buy ARM Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in Arm’s case, it is in the Information Technology sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

ARM Price Action: Arm shares were up 2.54% at $176.47 at the time of publication on Tuesday, according to Benzinga Pro. The stock is about 3.5% below its 52-week high and is trading approximately 22.2% above its 50-day moving average.

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