ARM (NASDAQ:ARM) Trading Up 2.3% - Still a Buy?

Key Points

• ARM shares rose 2.3% on Wednesday, trading as high as $417.50 amid heavier-than-normal volume of 11.6 million shares, far above its average daily volume.
• Recent news has been bullish for Arm’s AI business, including reports that Nvidia’s RTX Spark uses an Arm-based CPU design and that demand for Arm’s AI data-center CPUs is running ahead of expectations.
• Despite the momentum, valuation concerns remain: the stock has surged sharply, analysts still see a consensus target of $226.92 versus the current price well above that level, and recent insider sales added to the cautious tone.

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM - Get Free Report) was up 2.3% on Wednesday . The company traded as high as $417.50 and last traded at $411.83. Approximately 11,588,732 shares traded hands during mid-day trading, an increase of 36% from the average daily volume of 8,510,774 shares. The stock had previously closed at $402.71.

Trending Headlines about ARM

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Nvidia’s RTX Spark launch reportedly uses an Arm design for the CPU, reinforcing Arm’s relevance in AI PCs and potentially supporting future royalty growth. Arm Stock Jumps As Chip Designer Joins Nvidia PC Effort
• Positive Sentiment: Reports say Arm’s AI data-center CPU demand is running ahead of expectations, and management indicated its $15 billion chip target may be reached sooner than planned. Arm's $15 Billion AI Chip Target May Arrive Early
• Positive Sentiment: Arm named major users of its AI data-center CPUs, including ByteDance and Oracle, underscoring broader adoption across the AI infrastructure stack. Arm names ByteDance and Oracle as users of its AI data centre CPUs
• Neutral Sentiment: An insider sale of 4,200 shares by William Abbey was disclosed, but the transaction is modest compared with the stock’s AI-driven momentum. Insider trade disclosure
• Negative Sentiment: Recent coverage noted ARM’s valuation is extremely stretched after a massive rally, which could make the shares vulnerable if growth expectations cool. ARM Shares Surge 270% in 2026: Buy, Hold, or Wait for a Pullback?

Analyst Upgrades and Downgrades

A number of analysts recently weighed in on ARM shares. Rosenblatt Securities upped their target price on shares of ARM from $175.00 to $270.00 and gave the company a "buy" rating in a research note on Thursday, May 7th. TD Cowen upped their target price on shares of ARM from $165.00 to $265.00 and gave the company a "buy" rating in a research note on Thursday, May 7th. KeyCorp reissued an "overweight" rating on shares of ARM in a research note on Thursday, February 5th. Sanford C. Bernstein began coverage on shares of ARM in a research note on Monday, May 18th. They issued an "outperform" rating and a $300.00 target price on the stock. Finally, New Street Research raised shares of ARM from a "neutral" rating to a "buy" rating in a research note on Thursday, February 5th. Twenty research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $226.92.

ARM Price Performance

The stock has a market capitalization of $435.10 billion, a P/E ratio of 490.27, a PEG ratio of 14.85 and a beta of 3.78. The company's 50 day simple moving average is $204.85 and its two-hundred day simple moving average is $151.19.

ARM (NASDAQ:ARM - Get Free Report) last announced its earnings results on Wednesday, April 1st. The company reported $0.60 earnings per share (EPS) for the quarter. ARM had a net margin of 18.37% and a return on equity of 12.43%. The company had revenue of $1.49 billion for the quarter. On average, research analysts anticipate that ARM Holdings PLC Sponsored ADR will post 1.12 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, insider William Abbey sold 10,887 shares of the stock in a transaction that occurred on Tuesday, May 19th. The shares were sold at an average price of $224.14, for a total value of $2,440,212.18. Following the transaction, the insider directly owned 43,353 shares in the company, valued at $9,717,141.42. This represents a 20.07% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, insider Richard Roy Grisenthwaite sold 24,339 shares of the stock in a transaction that occurred on Monday, May 18th. The shares were sold at an average price of $209.15, for a total transaction of $5,090,501.85. Following the completion of the transaction, the insider owned 5,543 shares in the company, valued at $1,159,318.45. This represents a 81.45% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 290,032 shares of company stock valued at $61,590,292 over the last three months.

Hedge Funds Weigh In On ARM

Several institutional investors have recently modified their holdings of the stock. Morgan Stanley raised its holdings in ARM by 1.2% in the fourth quarter. Morgan Stanley now owns 3,783,006 shares of the company's stock worth $413,521,000 after purchasing an additional 45,314 shares during the period. Invesco Ltd. raised its holdings in ARM by 36.9% in the fourth 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 raised its holdings in ARM by 1.8% in the fourth 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 raised its holdings in ARM by 41.6% in 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 during the period. Finally, Schroder Investment Management Group raised its holdings in 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 purchasing an additional 187,035 shares during the period. 7.53% of the stock is currently owned by institutional investors and hedge funds.

ARM Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.