ARM Stock Soars as IBM Partnership Sends Shares Skyward

Arm Holdings' stock surged in after-hours trading on Wednesday, climbing 4.76% to $263, following an announcement of an expanded collaboration with IBM. The partnership will see IBM bring Arm architecture to its future mainframe systems, marking the first dual-architecture processor from the two companies.

The expanded collaboration comes after Arm reported stronger-than-expected first-quarter results in late July, beating analysts' expectations for both revenue and earnings per share. The company's quarterly earnings of 45 cents per share exceeded the 40-cent consensus estimate, while its revenue of $1.29 billion also surpassed the $1.26 billion forecast.

Raymond James raised its price target on Arm to $641 from $565 on Tuesday, maintaining an Outperform rating. The stock has a market capitalization of approximately $268.13 billion and has traded between a 52-week high of $452.61 and a 52-week low of $100.02.