Arm Holdings shares jumped 9.2% on Thursday, July 9.
The stock led a broad rally across the semiconductor sector.
UBS and TD Cowen analysts raised their price targets ahead of the July 29 earnings report.
Strong demand for AI and cloud computing technology fueled the positive sentiment.
Advanced Micro Devices (AMD) shares climbed 5.66%.
The iShares Semiconductor ETF (SOXX) rose 3.5%.
The rally highlights investor confidence in the AI-driven growth of chip companies.