ARM
NVDA
The market’s doing the pre-earnings happy dance
Arm Holdings is popping 8% in after-hours trading Tuesday, which is Wall Street’s version of pacing outside the exam room and saying, “I’m sure this will go great.” The buzz is building ahead of Arm’s fiscal fourth-quarter 2026 earnings report, due Wednesday, and investors clearly think the AI-compute story still has legs.
Why Arm keeps showing up in the AI group chat
Jim Cramer recently lumped Arm in with Nvidia as a key beneficiary of rising compute and AI demand, and that logic is doing a lot of the heavy lifting here. Arm doesn’t make the flashy chips themselves; it designs the architecture that powers a lot of them, which means it gets a slice of the boom without having to run a foundry like some stressed-out semiconductor landlord.
A few things traders are watching:
- Analysts expect Arm to post $0.54 in earnings per share on $1.47 billion in revenue for the quarter.
- In February, the company beat expectations in Q3, posting $0.43 per share on $1.24 billion in revenue.
- Short interest is still sitting at 11.7%, so there are plenty of skeptical folks waiting to see if the stock can keep sprinting.
Big picture: the bar is no longer low
Arm has already climbed hard over the last year, so this report isn’t just about whether the company can grow — it’s about whether it can keep convincing investors it deserves a premium. If the numbers land well, the AI trade gets another shiny reason to run. If not, the stock could learn that momentum is a fun friend until earnings season shows up.