Arm's latest bit of good news? Respect from a high-profile index.

By Emily Bary

Arm's stock is heading for its fifth day in a row of gains - and soon it will be part of the Nasdaq-100

Arm Holdings PLC's has grown its stature during its short time back on the public market, and now it's getting some respect from a high-profile index.

The chip designer will be joining the Nasdaq-100 Index NDX later this month, Nasdaq announced late Thursday. The change will take effect before the open on June 24, with Arm (ARM) replacing Sirius XM Holdings Inc. (SIRI)

Arm reemerged as a public company with a mid-September initial public offering that saw the company valued at upwards of $65 billion after its first day of trading. Shares have appreciated considerably since then, such that Arm's market capitalization was $164 billion as of Thursday's close.

Read: Popular tech-sector ETF could see major shakeup as Apple, Microsoft and Nvidia jockey for position

The company's market capitalization would rank it as the 22nd most valuable company within the Nasdaq 100, which is an index that encompasses the largest 100 non-financial companies listed on the Nasdaq. The popular Invesco QQQ ETF QQQ tracks the index.

Arm also ranked as the eighth-largest semiconductor company by market capitalization as of Thursday's close. It was more valuable than Micron Technology Inc. (MU) ($159 billion) and Intel Corp. (INTC) ($130 billion), based on data compiled by Dow Jones Market Data.

Shares of Arm are up about 4% in Friday morning trading and on track to rally for the fifth session a row. The stock is ahead roughly 20% over the current five-day stretch, and it's up 118% so far this year.

Rosenblatt Securities analyst Hans Mosesmann called Arm "a top secular pick" alongside Nvidia Corp. (NVDA) in a note to clients earlier this week. "We believe that the positive ARM PC and overall compute themes showcased last week at Computex in Taiwan will benefit the increasing pervasiveness of the company's [intellectual property] in the future," he wrote.

-Emily Bary

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06-14-24 1007ET

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