On September 21, ARM Holdings rose 4.62% in pre-market trading, trading at 288.32 USD/share, with turnover of $1.1908 million. The stock continues its upward momentum following a series of bullish catalysts.
On the news front, SoftBank Group has increased a margin loan backed by Arm shares by $5 billion to $25 billion, as the Japanese conglomerate seeks funding for its expanding AI investments. SoftBank renegotiated loan terms and signed an agreement with creditors this month. This marks the third time SoftBank has expanded the margin loan facility using Arm shares, underscoring its strong conviction in Arm's value. As of May, the loan was secured by 769 million Arm shares, representing approximately 72% of the chip designer's equity. The loan is priced at roughly 225 basis points above SOFR plus a 25 bps credit adjustment spread.
Additionally, Arm CEO Rene Haas stated that his confidence in the company's AGI CPU achieving a $2 billion revenue target has further strengthened, with supply lock-in capabilities continuing to improve. Arm first disclosed in May that it could see $2 billion in customer demand for its custom CPU, doubling the initial $1 billion estimate announced in March.
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