Arm Holdings is the IBD Stock Of The Day as the chip design firm is seen benefiting from China's efforts to boost its use of domestic processors. Arm stock surged above a downward trendline on Monday.
The Financial Times reported Sunday that the Chinese government is looking to phase out Intel and AMD chips from its PCs and servers in favor of domestic alternatives.
"Arm could be a potential beneficiary of the new regulations given the likelihood that many of the alternative processors are based on Arm's architecture," Wedbush Securities analyst Matt Bryson said in a client note Monday.
In other Arm news, the Cambridge, U.K.-based firm last week announced a partnership with Intel to help chip startups.
Together, the companies will provide essential intellectual property and manufacturing support, while also making financial assistance available, to foster innovation and growth for startups developing a range of devices built on Arm-based designs and manufactured by Intel Foundry.
Arm Stock On 3 IBD Stock Lists
On the stock market today, Arm stock climbed 3.1% to close at 138.31.
With the move higher, Arm snapped a downward trendline. Additionally, Arm stock should have a new base after this week. That base, a consolidation pattern, would have a buy point of 164.
However, aggressive investors could use the 150 level as an early entry, according to IBD stock analysis.
Arm shares spiked to an all-time high of 164 on Feb. 12, according to IBD MarketSurge charts. That was three trading days after the company beat Wall Street's expectations for its fiscal third quarter and provided a bullish outlook for the current period.
Arm stock is on three IBD lists: IBD 50, Leaderboard and Tech Leaders.
Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
