+17% in a single session: This AI-picked stock catches a data-center breakout

Investing.com's AI-driven Strategies model identified a breakout stock on September 21, as Arm Holdings (NASDAQ:ARM) surged 17.16% and closed at $322.90, pushing its market cap to approximately $344.9 billion and delivering a month-to-date gain of over 37%. Despite still being below its 52-week high of $452.70, the chip designer has still achieved significant growth, providing investors with potential for expansion.

Quality Compounders (QC15), which holds Arm as an active position, is up 6.82% month-to-date compared to the S&P 500's 1.75%, giving it a 5.07-point advantage. The bullish outlook on Arm is attributed to its growing involvement in AI data-center silicon, including the new Neoverse CSS N4 platform and Arm AGI CPU designs targeted at agentic-AI workloads. The company's custom-chip relationship with Meta and other hyperscalers is also contributing to its positive trajectory.

CEO Rene Haas highlighted the record demand for Arm's technology, a more optimistic tone in recent earnings calls. Favorable falling Treasury yields have also added a macro tailwind to Arm's positive outlook. Another Quality Compounders holding, Qualcomm (NASDAQ:QCOM), has also seen a 17.21% gain this month, reaching $194.23. The company is set to unveil its Snapdragon 8 Elite Gen 6 and Gen 6 Pro chips at the Snapdragon Summit in Maui, alongside a focus on automotive and data-center silicon.