CNBC Investing Club: Cramer’s Morning Take on Arm Holdings 4/21/26

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Jim Cramer (0:59)

Jim Cramer here to share a short preview of my take on the market from today's Members Only CNBC Investing Club morning meeting. Join the club for full access to the morning meeting every day at 10:20 a.m. Visit cnbc.com/morningtake to sign up today. That's one word, morning take.

Jim Cramer (1:22)

We did start a new position in the portfolio yesterday.

Arm Holdings, tech name, it's always had a great license, royalty revenue stream, so customers, the main business model customers pay Arm a licensing fee for the right to use the intellectual property and designs. Then once they produce chips of their own, Arm collects royalty fee on every semiconductor that gets made using their tech, usually at a fixed percentage. But now they're also getting into silicon making with the Arm AGI CPU. They announced last month at the Arm Everywhere event. They already have Meta signed up, OpenAI signed up.

Why CPUs? Well, it's all about the agentic era. The agentic AI era where you need the CPUs to handle reasoning, coordination, data movement. GPUs will do the computational work. In agentics, AI workloads require much more CPUs to GPUs than previous AI workloads. Hence this CPU shortage that is happening.

Jim Cramer (2:22)

Yeah.

Look, Rene Haas is taking advantage of that. I will point out that I think that SubRose, what's really going on here, Rene is really close partners to Nvidia. And it's entirely possible that there will be a relationship, even though Nvidia has a great relationship with everybody here, that this is going to be the preferred one.

Jim Cramer (2:41)

Well, yeah, Nvidia's CPU is based off of Arm architecture. Remember, Nvidia tried to buy Arm at one point many years ago. But why Arm-based CPUs versus x86, which is Intel, which is AMD? It's all about efficiency. It offers two times performance per rack versus x86, according to the company, which they can deliver up to $10 billion in CapEx savings per gigawatt of AI data center capacity.

Jim Cramer (3:06)

It burns much less hot. That's always been one of the reasons why Arm's liked them cell phones. So I think that the combination of Renee's close ties with Nvidia, where I think there's going to be kind of almost built in if you just want them in the rack, and the fact that there are going to be good in the qualities that people want. They want it to burn less, you know, but less hot, lower, smaller space.

They're going to win.

SPEAKER_5 (3:38)

All opinions expressed by Jim Cramer on this podcast and in connection with the CNBC Investing Club are solely Cramer's opinions and do not reflect the opinions of CNBC or its parent company or affiliates and may have been previously disseminated by Cramer on television, radio, internet or another medium. No specific outcome or profit is guaranteed in connection with your reliance upon or other use of the content from Cramer. The opinions offered in connection with this podcast and the CNBC Investing Club are not an attempt to induce any particular trading behavior, investment or strategy. To view the full CNBC Investing Club disclaimer, please visit cnbc.com/investingclubdisclaimer.

SPEAKER_2 (4:09)

Trading at Schwab is powered by Ameritrade, giving you even more specialized support than ever before. Like access to the trade desk. Our team of passionate traders ready to tackle anything from the most complex trading questions to a simple strategy gut check. Need assistance? No problem. Get 24-7 professional answers and live help and access support by phone, email and in-platform chat. That's how Schwab is here for you to help you trade brilliantly.

Learn more at schwab.com/trading.