Arm Holdings (NASDAQ: ARM) is a key player in the global semiconductor industry. It designs, develops, and licenses its intellectual property (IP) to major chipmakers and original equipment manufacturers (OEMs),

The market's reaction to the news about Project Stargate was very positive with ARM's stock skyrocketing by as much as 16%. Read my analysis.

Arm stock jumped yesterday on the news about Stargate, a new AI infrastructure project targeting $100 billion to $500 billion in investment, as Softbank CEO Masayoshi Son was one of the three tech chiefs at the announcement, and Softbank, which owns about 90% of Arm, is in charge of financing the project.

Arm Holdings (NASDAQ:ARM) is another semiconductor company with large 2025 returns; not much of a surprise. Semiconductor firms dominated the charts last year as well. ARM stock has doubled its stock price in just the past year. This is mostly because they’ve had very strong quarter-over-quarter growth and bullish revenue forecasts.

Arm stock is expensive, but the company has a clear competitive advantage in its industry. Its power-efficient chips have 99% market share in the smartphone market, and it's gaining share in the data center segment for similar reasons.