ARM (NASDAQ:ARM) Stock Price Down 3.2% - What's Next?

Key Points

• ARM shares fell 3.2% on Thursday, trading as low as $339.52 before ending near $347.71, with volume below its daily average. The move came amid broader weakness and profit-taking in high-flying AI and semiconductor names.
• Despite the pullback, analyst sentiment remains mostly positive: several firms recently raised price targets, including Bank of America to $460 and Sanford C. Bernstein to $500. ARM still carries a consensus “Moderate Buy” rating.
• Investor focus continues to center on ARM’s AI and data-center growth potential, though valuation concerns are weighing on the stock. The company trades at a very high P/E and has seen insider selling and recent debate over whether the shares have run too far.

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM - Get Free Report) shares were down 3.2% during mid-day trading on Thursday . The stock traded as low as $339.52 and last traded at $347.71. Approximately 8,302,772 shares were traded during trading, a decline of 8% from the average daily volume of 9,045,798 shares. The stock had previously closed at $359.08.

Trending Headlines about ARM

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Arm regained some support after analysts raised price targets and reiterated bullish views, helping the stock rebound in premarket trading. Arm Holdings Stock Rebounds After PT Hikes
• Positive Sentiment: Investor optimism remains tied to Arm’s role in AI chips and data-center CPUs, with commentary highlighting long-term upside if demand for Arm-based compute continues to expand. AMD and Arm Emerge as Key Winners in the Next AI Wave
• Positive Sentiment: Masayoshi Son’s highly bullish valuation comments reinforced the view that Arm could still have substantial long-term growth potential, even if the timeline is uncertain. Masayoshi Son Says ARM’s Valuation Could Soar Over 10X From $391B, Defends INTC Investment — ‘US Has No Choice But To Strengthen Intel’
• Neutral Sentiment: New commentary asked whether Arm is still a buy near current levels, reflecting ongoing debate about whether the stock’s recent rally has gone too far. Is Arm Holdings a Buy Near $347? The Case for Double-Digit Upside
• Neutral Sentiment: Coverage comparing Arm with AMD in the AI data-center market kept attention on the company’s competitive positioning, but did not point to a decisive new catalyst. Arm Holdings vs Advanced Micro Devices: One Winner of The AI Data Center Showdown
• Negative Sentiment: Arm has been slipping as investors pulled back from richly valued AI winners, with the stock extending losses after a prior selloff tied to broader semiconductor weakness and profit-taking. Arm stock slides despite Wall Street upgrades as AI CPU optimism grows
• Negative Sentiment: Another recent note warned that Arm’s big 2026 rally may be prompting investors to lock in gains after a double-digit daily drawdown. Arm Stock Is Up 235% in 2026: Is Todays 10% Drawdown a Take-Profits Signal?

Analysts Set New Price Targets

Several research firms have commented on ARM. Bank of America lifted their target price on shares of ARM from $335.00 to $460.00 and gave the stock a "neutral" rating in a research note on Tuesday. Barclays increased their price target on ARM from $250.00 to $360.00 and gave the stock an "overweight" rating in a research note on Monday, June 1st. Needham & Company LLC reaffirmed a "buy" rating and issued a $400.00 price objective on shares of ARM in a research report on Tuesday, June 16th. Deutsche Bank Aktiengesellschaft reiterated a "hold" rating on shares of ARM in a research note on Thursday, May 7th. Finally, Sanford C. Bernstein set a $500.00 target price on ARM in a research report on Wednesday, June 17th. Nineteen investment analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $279.83.

ARM Stock Performance

The company has a market cap of $371.38 billion, a price-to-earnings ratio of 413.94, a price-to-earnings-growth ratio of 13.31 and a beta of 3.78. The stock's fifty day simple moving average is $284.67 and its two-hundred day simple moving average is $180.54.

ARM (NASDAQ:ARM - Get Free Report) last released its quarterly earnings data on Wednesday, April 1st. The company reported $0.60 EPS for the quarter. The business had revenue of $1.49 billion during the quarter. ARM had a return on equity of 12.43% and a net margin of 18.37%. Analysts predict that ARM Holdings PLC Sponsored ADR will post 1.12 EPS for the current fiscal year.

Insider Transactions at ARM

In other ARM news, insider William Abbey sold 6,566 shares of the company's stock in a transaction dated Monday, June 1st. The stock was sold at an average price of $402.72, for a total transaction of $2,644,259.52. Following the completion of the sale, the insider directly owned 20,563 shares in the company, valued at $8,281,131.36. This represents a 24.20% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, insider Charlotte Claire Eaton sold 4,000 shares of ARM stock in a transaction dated Thursday, May 21st. The shares were sold at an average price of $282.77, for a total value of $1,131,080.00. Following the completion of the transaction, the insider directly owned 7,805 shares in the company, valued at $2,207,019.85. This represents a 33.88% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 248,205 shares of company stock valued at $57,741,572.

Institutional Investors Weigh In On ARM

Several institutional investors have recently bought and sold shares of the business. Morgan Stanley raised its stake in shares of ARM by 1.2% in the 4th quarter. Morgan Stanley now owns 3,783,006 shares of the company's stock valued at $413,521,000 after acquiring an additional 45,314 shares during the period. Invesco Ltd. boosted its position in ARM by 36.9% during the 4th quarter. Invesco Ltd. now owns 2,426,850 shares of the company's stock worth $265,279,000 after purchasing an additional 654,727 shares during the period. Coatue Management LLC boosted its position in ARM by 1.8% during the 4th quarter. Coatue Management LLC now owns 2,300,000 shares of the company's stock worth $251,413,000 after purchasing an additional 40,174 shares during the period. Wellington Management Group LLP lifted its stake in shares of ARM by 41.6% during the fourth quarter. Wellington Management Group LLP now owns 2,149,159 shares of the company's stock worth $234,925,000 after purchasing an additional 631,576 shares in the last quarter. Finally, Schroder Investment Management Group boosted its position in shares of ARM by 11.0% in the fourth quarter. Schroder Investment Management Group now owns 1,891,310 shares of the company's stock worth $206,739,000 after buying an additional 187,035 shares during the period. 7.53% of the stock is currently owned by hedge funds and other institutional investors.

About ARM

Arm Limited NASDAQ: ARM is a global semiconductor IP company best known for designing energy-efficient processor architectures and related technologies that underpin a wide range of computing devices. Founded in 1990 as a joint venture between Acorn Computers, Apple and VLSI Technology and headquartered in Cambridge, England, Arm develops the ARM instruction set architectures and core processor designs that chipmakers license and integrate into custom system-on-chip (SoC) products. The company operates a licensing and royalty business model rather than manufacturing chips itself.

Arm's product portfolio includes CPU core families (such as Cortex and Neoverse lines), GPU and multimedia IP (Mali), neural processing units (Ethos) and a suite of system and physical IP blocks.

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