Jim Cramer Says Selling Arm Holdings (ARM) Early Was a “Big Mistake”

On September 16, Mad Money host Jim Cramer addressed the recent decline in Arm Holdings plc (ARM) stock, asserting that selling early was a "big mistake." ARM, a leading chip design company also manufacturing its CPUs, experienced a 46% drop from its June peak of $452 to just under $244. Cramer disputed the notion of a self-imposed slowdown in the data center industry, attributing the stock's decline to concerns over potential capital spending reductions by major AI laboratories.

Despite the recent setback, Cramer maintains a positive outlook, highlighting ARM's exceptional financial performance and growing institutional confidence. The company's Q2 FY27 results are expected in November, with revenue projected at $1.38 billion and non-GAAP earnings per share at $0.47. Cramer encourages patient investors to view temporary price drops as opportunities for long-term gains.