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Arm Holdings plc (NASDAQ:ARM) was among the stocks Jim Cramer highlighted, as he discussed the massive AI infrastructure buildout. During the episode, Cramer mentioned that QUALCOMM reminds him of the company and said:
Kind of reminds me of its competitor, Arm Holdings, a position we’ve been trying to build for the Charitable Trust ahead of when it reports on May 6. Candidly, Arm has gotten away from us. The stock’s going parabolic. You know, I don’t buy parabolas.
Stock market data. Photo by Burak The Weekender on Pexels
Arm Holdings plc (NASDAQ:ARM) designs and licenses CPU architectures, system IP, and software used across automotive, computing, consumer, and IoT applications. Cramer mentioned the stock during the April 27 episode and remarked:
Last Monday, the Trust added semiconductor design company, Arm Holdings, to the portfolio, and then the… thing proceeded to rally 34% over the next four days. If you go back further, Arm gained over 71% from March 30th to April 24th. So even though we’re big fans of the stock, what we do, we can’t sell it because I mentioned it, but we downgraded it from a one, which means a buy for the Trust, to a two, meaning a buy into weakness, which typically means I try to take something off. Price matters and when something surges 34% in less than a week, well, you know what, you gotta pull in your horns. You can’t be a pig.
While we acknowledge the potential of ARM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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