Shares of Arm Holdings (NASDAQ: ARM) were trading higher this week. The company's stock gained 8.9% as of market close but was up as much as 13% earlier in the week. The leg up comes as the S&P 500 and Nasdaq 100 were up 1.

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.

Shares of Arm Holdings (NASDAQ:ARM) soared 14% today after CEO Rene Haas remarked on CNBC about its role in the massive AI 'Stargate' projects announced by President Trump and SoftBank (TYO:9984)'s commitment to its stake in the company.

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.