Arm stock rally continues as investors bet on AI

Shares of Arm Holdings (ARM) are surging Wednesday following increased AI demand noted in the company's fourth quarter earnings results last week. KeyBanc Capital Markets Research Analyst John Vinh joins Yahoo Finance Live to discuss the drivers.
Vinh says Arm's products are seeing "significant traction" in AI, which he believes can be a "much more meaningful contributor for them" for the next 3-5 years. While the stock "trades at a pretty hefty premium" with some AI upside already priced in, he says Arm's "best-in-class" business model and strong margins amid growing AI hype will continue boosting its appeal.
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