On September 21, ARM Holdings rose 3.17% overnight, trading at $283.31 per share, with turnover of $2.0577 million. The move was driven by a dual catalyst: SoftBank Group raising its Arm-backed margin loan facility and growing management confidence in AI chip revenue.
SoftBank has increased its margin loan collateralized by Arm shares by $5 billion to a total of $25 billion to fund its expanding AI investment agenda. The Japanese conglomerate renegotiated terms with creditors and signed an updated agreement this month. This marks the third time SoftBank has expanded its margin loan using Arm holdings, underscoring its strong conviction in Arm's valuation. Meanwhile, Arm CEO Rene Haas stated that his confidence in the company's AGI CPU achieving a $2 billion revenue target has further strengthened, citing continued improvement in supply lock-in capabilities. Arm first disclosed the $2 billion demand pipeline during its May earnings call, doubling its initial $10 billion estimate announced alongside its first custom CPU launch in March.
The broader semiconductor sector also traded positively overnight, with Intel up 3.35%, AMD up 1.43%, Micron up 0.54%, Broadcom up 0.25%, and NVIDIA up 0.21%.
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