In a significant day for the semiconductor industry, Arm Holdings (ARM) stock reached an all-time high of $210.80 on April 23, while Qualcomm (QCOM) surged 9.38% on April 24. Both moves highlight a growing market focus on the role of CPUs and edge computing in the evolving artificial intelligence landscape.
Arm Holdings' Record Rally
ARM stock capped a six-day rally, rising over 7% in a single session and pushing its year-to-date gains to approximately 86%. The rally was fueled by a shift in AI demand dynamics, where agentic AI workloads are requiring significantly more CPU power. Northland analyst Gus Richard noted that the CPU-to-GPU ratio moves from 1:8 for training to 1:2 for agentic AI. Evercore ISI's Mark Lipacis even suggested a potential flip to 8:1 in favor of CPUs, calling it a "CPU Renaissance." RBC Capital added that server CPU demand is outpacing supply and could remain constrained through 2027.
A key product catalyst was Arm's announcement of a new AGI-focused CPU built specifically for agentic AI workloads, with Meta Platforms signing on as the lead partner to use the chip for training Llama 4. This marks Arm's shift into in-house silicon production, a strategic pivot that has captured market attention.
Wall Street responded with a flurry of analyst actions ahead of Arm's Q4 FY2026 earnings, due May 6. Susquehanna raised its price target from $170 to $210, while Goldman Sachs lifted its target from $110 to $125. However, Morgan Stanley downgraded ARM from "Overweight" to "Equal Weight," citing near-term risks despite the AGI CPU's potential. The consensus among 30 analysts is a "Moderate Buy," with an average price target of $179, though the Street-high sits at $240.
Arm's Q3 FY2026 results set a strong foundation. Revenue rose 26% year-over-year to $1.24 billion, with licensing revenue up 25% to $505 million and royalty revenue up 27% to $737 million. Annualized contract value reached $1.62 billion, up 28%. Additionally, CEO Rene Haas took on an expanded role at SoftBank Group International, adding institutional confidence.
Qualcomm's Edge AI and Automotive Rebound
Qualcomm's stock jumped 9.38% on April 24, recovering from analyst downgrades and a roughly 23% year-to-date decline. The bounce came amid broader gains in large-cap tech and semiconductor stocks, driven by optimism around Qualcomm's AI PC and automotive chip push ahead of its April 29 earnings.
While headwinds from Apple's modem transition and smartphone memory shortages have weighed on the stock, analysts and investors are increasingly recognizing Qualcomm's growing presence in edge AI—running AI directly on devices rather than in the cloud. Automotive revenue reached $1.1 billion in the most recent quarter, up 15% year-over-year, with a $45 billion design-win pipeline. IoT and automotive combined are projected to account for nearly half of Qualcomm's chip revenue by 2030.
The company recently launched the Dragonwing IQ10, a chip designed for humanoid robots, and its acquisition of Arduino—a development platform used by 32 million engineers—further anchors Qualcomm silicon into the next generation of industrial design. On the financial side, a $20 billion share buyback program, representing about 15% of its market cap, is seen as supporting the stock price. Qualcomm currently trades at roughly 12x forward earnings, compared to significantly higher multiples for competitors like Broadcom and Marvell.
