Arm Holdings PLC Sponsored ADR (NASDAQ:ARM – Get Free Report)’s share price shot up 4.2% during mid-day trading on Tuesday . The company traded as high as $251.22 and last traded at $249.0770. 677,046 shares changed hands during mid-day trading, a decline of 91% from the average session volume of 7,790,556 shares. The stock had previously closed at $239.01.
Key Stories Impacting ARM
Here are the key news stories impacting ARM this week:
- Positive Sentiment: Arm’s AI growth opportunity remains the central bullish argument. The company’s processor architecture is used in many hyperscalers’ custom CPUs, allowing it to collect licensing fees and per-chip royalties as data-center and AI spending expands. Its fiscal first-quarter revenue rose 22% year over year to $1.29 billion, while earnings exceeded analyst expectations. Prediction: Arm Could Be the Picks-and-Shovels Winner of the AI Boom
- Positive Sentiment: The launch and expansion of Arm’s Neoverse CSS N4 and AGI CPU initiatives strengthen its positioning in cloud, edge-computing and AI workloads. Management is also promoting Arm’s role in “physical AI,” including robotics and autonomous systems, while ZaiNar joined the Arm Total Design program as a founding physical-AI partner. Arm expands AI chip push with Neoverse CSS N4 and AGI CPU ZaiNar Joins Arm Total Design For Physical AI As Founding Location Partner
- Neutral Sentiment: Analysts and commentators remain divided over whether the recent AI-related selloff has made ARM attractive. Supporters view Arm as a “picks-and-shovels” beneficiary of AI, while others argue the stock needs a much lower entry price. Is Arm Holdings (ARM) Cheap After The AI Stock Pullback?
- Negative Sentiment: ARM’s elevated valuation remains the main risk. Reports cite a forward multiple near 120 times earnings, leaving little room for execution or growth disappointments. A broader Nasdaq and semiconductor selloff recently pressured the shares, and the company still has meaningful exposure to smartphones, which generated about 43% of fiscal 2026 royalty revenue. Arm stock falls 7% as AI selloff, valuation risks hit chip designer Arm Stock Is Down More Than 40%. Here’s Why I’m Staying on the Sidelines.
Wall Street Analyst Weigh In
ARM has been the topic of a number of research analyst reports. Barclays raised their price target on shares of ARM from $250.00 to $360.00 and gave the company an “overweight” rating in a research note on Monday, June 1st. Jefferies Financial Group reissued a “buy” rating and issued a $320.00 price objective on shares of ARM in a research note on Monday, July 20th. New Street Research upgraded shares of ARM from a “neutral” rating to a “buy” rating and set a $260.00 target price on the stock in a research report on Thursday, July 30th. KeyCorp boosted their target price on shares of ARM from $300.00 to $430.00 and gave the stock an “overweight” rating in a research note on Tuesday, July 14th. Finally, Needham & Company LLC reiterated a “buy” rating and set a $255.00 price target on shares of ARM in a report on Thursday, July 30th. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $305.72.
ARM Price Performance
The company has a fifty day moving average price of $264.17 and a two-hundred day moving average price of $244.38. The company has a market capitalization of $258.70 billion, a P/E ratio of 250.28, a PEG ratio of 7.85 and a beta of 3.89.
ARM (NASDAQ:ARM – Get Free Report) last issued its quarterly earnings data on Thursday, July 30th. The company reported $0.45 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.40 by $0.05. ARM had a net margin of 20.25% and a return on equity of 12.24%. The business had revenue of $1.29 billion during the quarter, compared to analyst estimates of $1.26 billion. During the same quarter last year, the business earned $0.35 EPS. The firm’s quarterly revenue was up 22.4% on a year-over-year basis. As a group, sell-side analysts forecast that Arm Holdings PLC Sponsored ADR will post 1.15 earnings per share for the current year.
Insider Activity
In other news, CFO Jason Child sold 10,400 shares of ARM stock in a transaction on Thursday, August 27th. The shares were sold at an average price of $255.33, for a total transaction of $2,655,432.00. Following the transaction, the chief financial officer owned 163,832 shares in the company, valued at approximately $41,831,224.56. The trade was a 5.97% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
Institutional Trading of ARM
A number of institutional investors and hedge funds have recently bought and sold shares of ARM. GAMMA Investing LLC lifted its holdings in ARM by 18.7% during the 2nd quarter. GAMMA Investing LLC now owns 406 shares of the company’s stock worth $144,000 after buying an additional 64 shares during the period. Allworth Financial LP increased its stake in shares of ARM by 2.9% in the second quarter. Allworth Financial LP now owns 2,269 shares of the company’s stock valued at $804,000 after buying an additional 65 shares during the period. MCF Advisors LLC raised its position in shares of ARM by 11.7% during the second quarter. MCF Advisors LLC now owns 764 shares of the company’s stock worth $271,000 after acquiring an additional 80 shares during the last quarter. AdvisorNet Financial Inc raised its position in shares of ARM by 6.2% during the first quarter. AdvisorNet Financial Inc now owns 1,681 shares of the company’s stock worth $254,000 after acquiring an additional 98 shares during the last quarter. Finally, TD Waterhouse Canada Inc. lifted its stake in shares of ARM by 0.5% in the second quarter. TD Waterhouse Canada Inc. now owns 18,674 shares of the company’s stock worth $6,309,000 after acquiring an additional 102 shares during the period. 7.53% of the stock is currently owned by institutional investors and hedge funds.
ARM Company Profile
Arm Holdings plc is a semiconductor and software intellectual property company headquartered in Cambridge, England. Rather than manufacturing chips, Arm develops processor architectures and technology designs that it licenses to semiconductor companies, device manufacturers and other technology businesses for use in their own products.
Arm’s portfolio includes central processing unit (CPU) architectures and processor cores, graphics processing units (GPUs), systems IP, interconnect technology, security solutions and related software and development tools.
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