Arm Holdings plc (ARM) stock jumped nearly 13% Monday as investors reacted to CEO Rene Haas' bullish comments on AI-driven demand and the company's emerging chip business.

Haas Says Arm Demand Has Never Been Stronger

Haas said demand for Arm's technology has "never been stronger" as AI drives rising requirements for CPUs, GPUs, memory, equipment and materials.

He also warned that supply constraints could persist for years as the industry works to meet that demand.

Haas said he has grown more confident that Arm can reach $2 billion in revenue from its emerging chip business, a target the company first discussed in May.

AI Demand Lifts Semiconductor Stocks

Arm's rally came alongside broader strength in semiconductor and technology stocks.

Strong AI demand supported chip stocks on Monday, while record South Korean exports reinforced signs of robust semiconductor demand. S&P 500 futures rose 0.7%.

Reuters reported that lower oil prices also eased some concerns about inflation and additional rate hikes, improving risk appetite across growth stocks.

Arm Maintains Longer-Term Uptrend

Arm trades above its 200-day SMA of $208.12 and 100-day SMA of $284.91.

The 50-day SMA remains above the 200-day SMA, preserving the golden cross formed in April.

However, the 20-day SMA of $252.19 remains below the 50-day SMA of $260.63, signaling a weaker short-term setup within the broader uptrend.

Arm Carries Significant ETF Exposure

Arm represents 3.96% of the First Trust International Equity Opportunities ETF (FPXI), 4.07% of the VanEck Fabless Semiconductor ETF (SMHX) and 7.50% of the Renaissance IPO ETF (IPO).

Its sizable weighting means significant inflows or outflows from these funds can translate into buying or selling of Arm shares.

ARM Stock Price Activity: ARM Holdings shares were up 13.21% at $311.99 at the time of publication on Monday, according to market data.