Arm Holdings plc (ARM) is experiencing a rise in its stock price today, primarily driven by its upcoming inclusion in the Nasdaq-100 Index. This announcement, made by Nasdaq, Inc., stated that Arm will replace Sirius XM Holdings Inc. in the index, effective before the market opens on December 24, 2024. Being added to such a prominent index often leads to increased demand for a stock, as index-tracking funds and institutional investors adjust their portfolios to include the new entrant. This anticipation of increased buying activity is likely contributing to the upward movement in Arm's stock.
Additionally, Arm Holdings is benefiting from broader market trends, particularly in the semiconductor industry, which is seeing robust growth due to the demand for AI technologies. The global semiconductor industry's revenue rose 17% y/y in Q3 2024, driven by AI and memory chip demand, as reported by Counterpoint Market Research. This sector-wide momentum is likely providing a favorable backdrop for Arm's stock performance.
Arm Holdings plc's stock is currently trading at $153.04, up 3.40% from its previous close of $148.00, and has seen a 1.01% increase from its opening price of $151.51.