Jim Cramer Makes Cryptic Remark About Arm Holdings (ARM)

We recently published 12 Stocks Jim Cramer Talked About. Arm Holdings PLC (NASDAQ:ARM) is one of the stocks that Jim Cramer talked about.

Chip design firm Arm Holdings PLC (NASDAQ:ARM)’s shares are down by 30% over the past year and are up by 1.7% year-to-date. In late January, Susquehanna upgraded the shares to Positive from Neutral and kept a $150 share price target. The financial firm cited the AI chip industry as the reason behind its optimism. It commented that Arm Holdings PLC (NASDAQ:ARM)’s partnership with Broadcom to develop an AI processor for OpenAI and a custom chip for Meta could create tailwinds for the firm. Earlier in the month, Bank of America had lowered Arm Holdings PLC (NASDAQ:ARM)’s share rating to Neutral from Buy and pointed out that the firm’s revenue could drop due to lower global smartphone shipments. BofA set a $120 share price target and added that the firm could nevertheless benefit from a broader growth in chip usage. Cramer commented on Arm Holdings PLC (NASDAQ:ARM)’s partnership with the Japanese conglomerate Softbank:

“I think that there is a sense with Arm, there were some long knives out for Arm. Last night. And some of that is because people are saying, alright, Softbank, but not Softbank when they’re going to sell. Cause they’re not. But David, you’ve probably looked at this, Softbank’s a huge customer now. So they own 87% now and they’re a huge customer. So David, what does that say to you?”

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Disclosure: None. This article is originally published at Insider Monkey.