Claude Code by Anthropic is revolutionizing coding by shifting towards agentic AI, driving demand for more CPU computing power, benefiting Arm Holdings. Arm saw data center royalty revenue double in the third quarter. The SaaSpocalypse scare was triggered by AI start-ups like OpenAI and Anthropic, with Claude Code causing a stir in Silicon Valley.

As agentic AI gains momentum, Arm Holdings is positioned to benefit as CPUs handle the bulk of workloads. With data center revenue doubling, Arm expects it to surpass mobile revenue soon. Although Arm stock is expensive, it has potential for growth with increasing demand for CPUs and newer products like Armv9 and CSS.

Considerations before buying Arm Holdings stock include the company’s potential for growth in the agentic AI era. While Arm wasn’t listed in the top 10 stocks to buy now by The Motley Fool Stock Advisor team, the company has promising upside potential. Stock Advisor has a track record of market-beating returns compared to the S&P 500.

Investors are eyeing Arm Holdings as a potential winner in the agentic AI era, with the company’s focus on CPUs and data center revenue growth driving optimism. The shift towards AI-driven technologies presents an opportunity for Arm to capitalize on market trends and drive future profitability.

Read more at Nasdaq: Anthropic’s Claude Code Is Taking Over, And This AI Stock Could Be a Big Winner