ARM (NASDAQ:ARM) Trading 1.2% Higher – Here’s Why

Arm Holdings PLC Sponsored ADR (NASDAQ:ARM) shares rose 1.2% on Tuesday . The company traded as high as $253.16 and last traded at $241.83. 3,747,645 shares traded hands during mid-day trading, a decline of 52% from the average session volume of 7,811,087 shares. The stock had previously closed at $239.01.

Key ARM News

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Arm is expanding its AI chip portfolio with the Neoverse CSS N4 and an AGI CPU, strengthening its position in data centers and other AI workloads. The company is also expected to discuss scaling “physical AI” at RoboBusiness, highlighting potential opportunities in robotics and edge computing. Arm expands AI chip push with Neoverse CSS N4 and AGI CPU Arm to discuss scaling physical AI at RoboBusiness
• Positive Sentiment: Arm’s licensing model positions it as a potential “picks-and-shovels” beneficiary of AI investment. The company’s architecture is used in many hyperscaler custom CPU programs, allowing Arm to collect licensing fees and per-chip royalties as deployments grow. Prediction: Arm Could Be the Picks-and-Shovels Winner of the AI Boom
• Neutral Sentiment: Recent commentary points to Arm’s growing role in desktop computing and a potentially favorable long-term comparison with Qualcomm. These are supportive strategic narratives, but they do not represent new financial guidance or confirmed near-term catalysts. Arm is the future of desktop computing
• Negative Sentiment: Valuation remains the main concern. Reports cite a forward multiple near 120 times earnings, while Arm’s shares have been highly volatile. That premium could lead to significant downside if AI growth, licensing demand, or royalty expansion disappoints. Is Arm Holdings Cheap After The AI Stock Pullback?
• Negative Sentiment: A broad technology and semiconductor risk-off move recently pressured ARM, with high-multiple AI stocks particularly exposed. Analysts also note that smartphones generated about 43% of Arm’s royalty revenue in fiscal 2026, underscoring continued reliance on a mature market. Arm stock falls as AI selloff and valuation risks hit chip designer Arm Stock Is Down More Than 40 Percent

Wall Street Analyst Weigh In

A number of equities analysts recently weighed in on the stock. Barclays upped their target price on shares of ARM from $250.00 to $360.00 and gave the stock an “overweight” rating in a research note on Monday, June 1st. KeyCorp increased their price objective on ARM from $300.00 to $430.00 and gave the stock an “overweight” rating in a report on Tuesday, July 14th. Mizuho boosted their target price on ARM from $425.00 to $500.00 and gave the company an “outperform” rating in a research note on Monday, June 8th. HSBC downgraded ARM from a “buy” rating to a “hold” rating and upped their price target for the stock from $255.00 to $315.00 in a research report on Tuesday, July 14th. Finally, Royal Bank Of Canada cut their price objective on shares of ARM from $475.00 to $340.00 and set an “outperform” rating on the stock in a research report on Thursday, July 30th. One investment analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating, seven have given a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $305.72.

ARM Stock Up 1.2%

The stock’s fifty day moving average is $264.17 and its two-hundred day moving average is $244.38. The firm has a market capitalization of $258.29 billion, a price-to-earnings ratio of 249.31, a P/E/G ratio of 7.85 and a beta of 3.89.

ARM (NASDAQ:ARM) last announced its quarterly earnings results on Thursday, July 30th. The company reported $0.45 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 firm had revenue of $1.29 billion during the quarter, compared to analysts’ expectations of $1.26 billion. During the same quarter last year, the company posted $0.35 earnings per share. The company’s revenue for the quarter was up 22.4% compared to the same quarter last year. As a group, analysts anticipate that Arm Holdings PLC Sponsored ADR will post 1.15 EPS for the current year.

Insider Transactions at ARM

In related news, CFO Jason Child sold 10,400 shares of ARM stock in a transaction dated Thursday, August 27th. The stock was sold at an average price of $255.33, for a total transaction of $2,655,432.00. Following the completion of the transaction, the chief financial officer owned 163,832 shares in the company, valued at approximately $41,831,224.56. This trade represents a 5.97% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Institutional Trading of ARM

Institutional investors and hedge funds have recently bought and sold shares of the business. Rathbones Group PLC boosted its stake in shares of ARM by 4,638.8% during the 4th quarter. Rathbones Group PLC now owns 500,043 shares of the company’s stock worth $54,660,000 after acquiring an additional 489,491 shares during the period. Partners Group Holding AG bought a new stake in ARM in the 4th quarter valued at $798,000. Pacific Heights Asset Management LLC raised its stake in ARM by 48.6% in the 4th quarter. Pacific Heights Asset Management LLC now owns 275,000 shares of the company’s stock valued at $30,060,000 after acquiring an additional 90,000 shares during the period. Leonteq Securities AG acquired a new stake in ARM during the 4th quarter valued at $3,695,000. Finally, ProShare Advisors LLC lifted its holdings in ARM by 44.7% during the 4th quarter. ProShare Advisors LLC now owns 215,871 shares of the company’s stock valued at $23,597,000 after purchasing an additional 66,710 shares during the last quarter. Institutional investors own 7.53% of the company’s stock.

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.