Promising AI stock Arm Holdings (ARM) surging, recommended to hold and trim when it bounces

From Yahoo Finance: 2025-05-14 12:47:00

Arm Holdings plc (NASDAQ:ARM) ranks 7th on the list of top buzzing stocks in May. Despite potential, under the radar AI stocks offer greater promise for higher returns in a shorter time frame. An AI stock has surged since 2025, outperforming popular AI stocks. For a promising AI stock trading at less than 5 times its earnings, check out our report on the cheapest AI stock.

Recent quarterly results from major tech companies ease concerns about AI demand. Liontrust Global Dividend Fund Manager Storm Uru praises Microsoft’s AI revenue growth, stating demand is accelerating after Deepseek launch. Grain Management CEO David Grain sees strong AI demand due to increased need for data centers and compute power.

Arm Holdings (ARM) has 38 hedge fund investors. Jim Cramer advises holding on to ARM stock and trimming when it bounces, as the semiconductor group has been oversold. Cramer recommends against selling at the current price. Check out our list of top buzzing stocks for potential investment opportunities.

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Read more: Wait for a ‘Bounce’ and ‘Don’t Sell It Here’