On September 22, ARM Holdings rose 3.09% in regular trading, trading at $332.505/share, with turnover of $1.12 billion. The stock extended its recent rally driven by a combination of positive catalysts from its parent company SoftBank and management confidence in AI-driven revenue growth.
On the news front, SoftBank Group has increased a margin loan backed by Arm shares by $5 billion to $250 billion, marking the third time the Japanese conglomerate has expanded the facility to fund its growing AI investments. SoftBank renegotiated terms and signed a new agreement with creditors this month, underscoring its strong conviction in Arm's value. Notably, SoftBank had pledged approximately 769 million Arm shares — representing 72% of the chip designer's equity — as collateral, with the loan priced at roughly 225 basis points over SOFR plus a 25 basis point credit adjustment spread.
Meanwhile, Arm CEO Rene Haas stated that his confidence in achieving the company's $2 billion AGI CPU revenue target has further strengthened, citing improving supply lock-in capabilities. Additionally, Samsung Electronics has partnered with Arm to co-develop edge AI chips using 2nm process technology, further expanding Arm's ecosystem reach.
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