Arm Shares Jump After Nvidia Unveils RTX Spark PC Chip

Arm shares rose more than 11% in premarket trading Monday after Nvidia revealed RTX Spark, an AI-focused processor for laptops and desktops that incorporates a MediaTek-designed Arm-based CPU. The gain extended a year-to-date rally that has more than tripled Arm’s share price.

Nvidia introduced RTX Spark at its GTC Taipei event and presented the chip as a way to run advanced AI workloads on Windows-based personal computers. Nvidia said MediaTek contributed a custom Arm-based CPU design intended to improve power efficiency, performance and connectivity. MediaTek’s shares climbed more than 5% in Taiwan trading.

Investors identified Arm as a likely beneficiary even though the company received only brief mention in Nvidia’s announcement. Market activity reflected expectations that wider use of AI on personal computers could raise demand for energy-efficient Arm architectures already common in smartphones and cloud servers.

Nvidia Chief Executive Jensen Huang told attendees, “One hundred percent of the world’s PC industry has joined us to reinvent the PC.” He said future AI-powered laptops would be able to search files, run research tasks and answer complex queries without relying entirely on cloud servers.

Shares of Advanced Micro Devices and Qualcomm fell in premarket trading as investors weighed the potential for Nvidia’s new chip to capture PC market share.

Arm Chief Executive Rene Haas has argued the company’s architecture is suited to a broader set of AI deployments. During Arm’s May earnings call, he said, “AI is moving to every device and every physical system,” and listed phones, PCs, vehicles, factories, robots, cameras, sensors and connected devices as markets that will need efficient, secure compute.

Brokerages adjusted their views after the announcement. Mizuho raised its price target on Arm to $425 from $360 and maintained an Outperform rating, citing steady demand for premium smartphones and growth opportunities from cloud and AI infrastructure customers. The firm also pointed to potential upside from Arm’s in-house CPU work and possible custom chip projects expected to contribute to revenue from 2027.

Market commentator Jim Cramer posted on social media, “The Nvidia superchip is obviously additive. It’s amazing for club holding ARM!” He later called Nvidia’s keynote a “breakthrough” for Arm-based CPUs.

Arm executives are scheduled to speak at Computex, where investors will look for more detail on the company’s AI strategy and any plans for custom silicon or expanded CPU designs. The RTX Spark announcement arrives amid investor focus on moving some AI computing beyond data centers and smartphones into personal devices.