The stock market declined sharply on Thursday, pressured by rising oil prices as investors reacted to the latest developments in the Middle East. Concerns about inflation and interest rates still pressuring equities.
Overall, S&P 500 fell 1.7% to 6,477, while NASDAQ dropped 2.4% to 21,408.
Chart of the Day
Here is the one-year chart of Arm (ARM) as of February 23, 2026, when the stock was at $124.
Arm, the industry leader in Intellectual Property (IP) for CPUs, is expanding its reach into supplying the actual CPUs to sell to customers: the ARM AGI CPU. The ARM CPU is expected to deliver twice the performance per watt compared to the current x86 platforms, and are being manufactured by Taiwan Semiconductor. Meta Platforms (META) is the lead partner and co-developer of the ARM AGI CPU, with other partners including OpenAI and Cloudflare.
Arm is expected to do $5 billion in revenue this Fiscal Year ending March 31. Management expects revenue to soar to $25 billion in five years. Profits (EPS) are expected to be $1.75 this year with management’s goal of $9 in five years. This is a HUGE catalyst for the company, and ARM stock is soaring on the news.
Meanwhile, ARM continues to see accelerating momentum in Cloud AI. Last quarter, Data Center Royalty revenue grew more than 100% year over year, and the company expects data center to be its largest business — larger than mobile — in the next few years.
Management stated workloads are becoming more “always on” and agent-based, which means data centers need more powerful and energy-efficient CPUs to handle constant processing. This shift is benefiting Arm’s Neoverse chips, which have now surpassed 1 billion cores deployed in the data center. Large cloud providers such as Amazon Web Services, Microsoft (MSFT), Google (GOOGL), and NVIDIA (NVDA) are launching new Arm-based processors with more cores and better power efficiency to support AI workloads.
ARM is part of the Growth Portfolio.
