ARM Holdings plc ($ARM) Stock Forecast: Down 5.1% Today

What is ARM Holdings plc?

ARM Holdings (ARM) is a leading semiconductor and software design company known for its advanced technology in the AI chip market. Today, the stock experienced a significant bearish movement.

Why is ARM Holdings plc going down?

ARM stock is down 5.1% on Feb 3, 2026 18:43

• Despite reporting its strongest-ever quarter and securing major AI deals with tech giants like Meta, Apple, AWS, and Google, ARM Holdings saw a 6.8% drop in its stock price. This could be attributed to:
• The stock's rich valuation and the concentration of new upside drivers presenting risks for investors, leading to profit-taking.
• Wealth Enhancement Advisory Services LLC and Y Intercept Hong Kong Ltd reducing their stakes in ARM Holdings, which might have signaled a lack of confidence in the stock's short-term performance.
• Analysts maintaining a "Moderate Buy" consensus with an average price target of $169.52, indicating a potential disconnect between market expectations and actual performance.
• The company's deepening role in big tech AI chips, highlighted by a long-term deal with Apple, may not have been enough to offset broader market concerns or profit motivations among investors.

ARM Price Chart

ARM Technical Analysis

ARM News

Arm Holdings (ARM) Is Down 6.8% After Record AI Deals With Meta, Apple, AWS, Google

Arm Holdings (ARM) experienced a 6.8% stock drop despite reporting its strongest-ever quarter and securing major AI deals with tech giants like Meta, Apple, AWS, and Google. The company's licensing and royalty model, reinforced by these collaborations and the launch of its Lumex CSS AI platform, is central to its investment narrative in the AI compute space. However, the stock's rich valuation and the concentration of new upside drivers present risks for investors.

https://simplywall.st/stocks/us/semiconductors/nasdaq-arm/arm-holdings/news/arm-holdings-arm-is-down-68-after-record-ai-deals-with-meta

Wealth Enhancement Advisory Services LLC Reduces Holdings in ARM Holdings PLC Sponsored ADR $ARM

Wealth Enhancement Advisory Services LLC significantly reduced its stake in ARM Holdings PLC Sponsored ADR by 64% in Q3 2025, selling 18,552 shares and ending the quarter with 10,431 shares valued at $1.48 million. This comes as ARM exceeded Q3 earnings estimates, reporting $0.39 EPS on $1.14 billion in revenue (up 34.5% year-over-year), and provided optimistic Q3 2026 guidance. Despite the stock trading around $105.36 with an elevated P/E ratio of 135.08, analysts maintain a "Moderate Buy" consensus with an average price target of $169.52.

https://www.marketbeat.com/instant-alerts/filing-wealth-enhancement-advisory-services-llc-reduces-holdings-in-arm-holdings-plc-sponsored-adr-arm-2026-02-01/

ARM Holdings PLC Sponsored ADR $ARM Shares Sold by Y Intercept Hong Kong Ltd

Y Intercept Hong Kong Ltd significantly reduced its stake in ARM Holdings PLC Sponsored ADR by 80.7% in Q3, selling 38,447 shares. Meanwhile, other institutional investors like Baillie Gifford & Co. initiated new, large positions, and several others increased their holdings in ARM. The company reported strong Q3 earnings, beating estimates with $0.39 EPS and $1.14 billion in revenue, leading to a mixed analyst reaction but an overall "Moderate Buy" rating.

https://www.marketbeat.com/instant-alerts/filing-arm-holdings-plc-sponsored-adr-arm-shares-sold-by-y-intercept-hong-kong-ltd-2026-01-31/

Arm Deepens Role In Big Tech AI Chips With Long Apple Deal

Arm Holdings (ARM) is strengthening its position in the AI chip market through its architecture, which is being adopted by tech giants like Amazon, Google, and Apple for their new AI and server processors. A significant long-term deal with Apple extending beyond 2040 highlights Arm's entrenched role. This collaboration reinforces Arm's licensing model, providing steady revenue streams from AI data centers and custom server chips, while keeping it central to cloud computing and advanced AI applications.

https://www.sahmcapital.com/news/content/arm-deepens-role-in-big-tech-ai-chips-with-long-apple-deal-2026-01-31

Arm Deepens Role In Big Tech AI Chips With Long Apple Deal

Arm Holdings is solidifying its position in the AI chip market through expanded collaborations with major tech companies like Amazon, Google, and Apple. Apple has signed a long-term deal extending beyond 2040, underscoring Arm's crucial role in mobile and data center chip design. These developments highlight Arm's licensing model for AI-focused processors and its deep integration into the infrastructure powering cloud services and advanced computing.

https://simplywall.st/stocks/us/semiconductors/nasdaq-arm/arm-holdings/news/arm-deepens-role-in-big-tech-ai-chips-with-long-apple-deal/amp

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ARM Holdings plc Price History

15.00.2026 - ARM Stock was up 5.1%

• Today's strong bullish movement in ARM's stock can be attributed to several factors:
• The expert outlook from 15 analysts with an average price target of $172.67, indicating positive sentiment towards the company's future performance.
• Recent adjustments to ratings and overall financial insights, showcasing a comprehensive view of ARM Holdings' market standing.
• The increased demand for downside protection following a recent downgrade by BofA might have triggered a short-term bearish movement, leading to a subsequent bullish rally as investors reevaluated the stock's potential.
• ARM's continued expansion of its product portfolio with compute subsystems and strong partnerships in cloud computing, along with beating consensus earnings estimates, could have instilled confidence in investors, driving the stock's upward momentum.

13.00.2026 - ARM Stock was down 2.7%

• The creation of a new Physical AI unit by ARM Holdings, focusing on robotics and automotive sectors, might have led to investor concerns about the company's growth prospects, as indicated by the stock's recent declines.
• Despite beating Q3 earnings estimates and receiving positive ratings from analysts, the stock is considered overvalued by some, with an intrinsic fair value estimated at $70 compared to its current price of $111.79.
• Institutional interest in ARM, with new investments from PKO Investment Management and other major players, suggests growing confidence in the company's future despite the recent market movement.
• The reorganization of ARM into three main business lines and its expansion in the robotics industry could be viewed as positive long-term strategies, but short-term market sentiment may have been influenced by valuation concerns and profit-taking actions by investors like Nepsis Inc.

22.00.2026 - ARM Stock was up 6.1%

• ARM's stock rose by 8.36%, boosted by positive market sentiment driven by strategic growth initiatives like the "Physical AI" expansion into robotics and the growing demand for its ARMv9 architecture.
• Investor confidence increased by 4.5% in premarket trading due to Susquehanna's upgrade on Arm's potential in data center and networking revenue.
• Market concerns about the stock's performance and potential impact from a high price-to-earnings multiple or a SoftBank stake sale were voiced by Jim Cramer. However, optimism surrounding ARM's growth prospects and strong Q3 earnings supported the bullish trend.

17.11.2025 - ARM Stock was down 5.2%

• The bearish movement in ARM's stock today can be attributed to several factors:
• The 13% decline in ARM's stock over the past year may have led to profit-taking by investors, especially after a downgrade to Sell with a price target of $120.00.
• Following strong quarterly earnings and positive guidance for Q3 2026, an increase in stake by a capital management company contrasted with a reduction in holdings by another investment firm.
• An initial boost in investor confidence from a raised price target was followed by a sell-off, potentially influencing market sentiment.
• The mixed analyst ratings, high valuation of ARM, and broader market conditions could have contributed to the bearish movement in the stock today, despite the company's strong fundamentals and growth prospects.

14.00.2026 - ARM Stock was down 5.5%

• Today's decline in ARM's stock price is linked to the market's reevaluation of the company's worth following the reorganization and recent stock depreciation.
• Despite robust Q3 earnings and increasing institutional attention, analysts perceive ARM as overpriced, with a fair value estimate of approximately $70, prompting investor wariness.
• The establishment of the Physical AI unit and foray into the robotics sector could indicate a strategic pivot towards high-demand industries. Nonetheless, the stock's dip in recent months has triggered a reconsideration of its growth potential.
• The varied analyst evaluations, including downgrades and steadfast bullish stances, mirror the uncertainty surrounding ARM's existing valuation and future performance in the ever-changing tech sector.

21.00.2026 - ARM Stock was up 5.9%

• ARM Holdings is a tech company recognized for its expertise in semiconductor and software design, specializing in mobile processors and physical AI applications. Investors closely monitor the company for its innovative solutions and market performance.
• A notable stake reduction in ARM Holdings was made by Mizuho Securities Co. Ltd. However, the company exceeded Q3 earnings expectations and provided a positive Q3 2026 outlook.
• On the advice of Jim Cramer, investors are urged to "hold" ARM Holdings stock despite performance concerns and SoftBank’s potential divestment impact. CEO Rene Haas is seen as a positive influence.
• ARM Holdings experienced a minor stock uptick ahead of the MLK Day shutdown, with anticipation surrounding the Q3 fiscal 2026 earnings report on February 4. Notable growth prospects in the "Physical AI" sector and market volatility due to geopolitical factors were highlighted.
• Prior to a long weekend, ARM Holdings stock saw an upward trend, aligning with a general chip sector rally. Investors are keen on the forthcoming earnings report to gain insight into licensing patterns, royalty revenues, and demand from sectors like data centers.

25.10.2025 - ARM Stock was down 5.3%

• Big money investors' bullish stance on ARM Holdings' options might have set high expectations in the market, which resulted in a sell-off when those expectations were not met.
• Reports on ARM's dual-sided network effect and strong presence in mobile computing could have sparked concerns about possible disruptions or competitive challenges, potentially contributing to the recent bearish movement.
• In summary, the mix of elevated investor expectations from options trading and concerns about industry disruptions likely played a role in the recent bearish movement of ARM's stock.

16.11.2025 - ARM Stock was down 5.6%

• Reynders McVeigh Capital Management LLC significantly increased its investment in ARM Holdings PLC Sponsored ADR, demonstrating a vote of confidence in the company's future prospects. However, this positive development was dampened by broader market conditions that led to the bearish movement.
• KeyBanc's upward adjustment of ARM's price target post strong earnings release signals optimism towards the company. Nevertheless, this positive outlook may have been overshadowed by prevailing market sentiments.
• Liontrust Investment Partners LLP decreased its holding in ARM Holdings PLC Sponsored ADR, potentially adding pressure on the stock as part of the bearish movement.
• Goldman Sachs revised down its rating on ARM Holdings and reduced the price target citing concerns about the company's competitive position in capitalizing on AI investments in comparison to its industry counterparts. This adjustment likely influenced the bearish market movement.

28.00.2026 - ARM Stock was down 5.3%

• A notable firm decreased its stake in ARM Holdings PLC by 14.4% in the third quarter of 2025, potentially signaling a lack of confidence in the company to other investors and contributing to the bearish movement.
• Concerns regarding the stock's overvaluation arose following a DCF analysis indicating an overvaluation of 126.8%, possibly prompting investors to sell their positions, thus driving the stock price down.
• Despite recent positive assessments of AI and server CPU expansion potential, the market may have responded unfavorably to the stock's high P/E ratio of 146.66x, significantly surpassing industry norms, which led to a bearish sentiment.
• Despite a positive 2026 outlook predicting substantial growth and returns for ARM Holdings, this may not have been sufficient to counter immediate worries about valuation and investor sentiment, contributing to the bearish market movement.

11.11.2025 - ARM Stock was down 5.0%

• Despite strong performance and a positive outlook, several factors may explain the bearish movement in ARM's stock today:
• A notable increase in stake by Axa S.A. and other institutional investors might have prompted profit-taking by investors such as the New York State Common Retirement Fund, leading to a temporary decline in the stock price.
• While ARM's emphasis on energy-efficient AI computing and its competitive position against rivals like NVIDIA and Intel appear promising, market reactions could reflect concerns regarding heightened competition in ARM's planned ventures into AI chip divisions.
• Overall market sentiment towards tech stocks or broader economic conditions could also contribute to the bearish movement in ARM's stock today, notwithstanding the company's positive Q3 guidance and favorable analyst ratings.
• Clear Street LLC's significant new investment in ARM in the second quarter demonstrates confidence in the company's future prospects, indicating that today's bearish shift may represent a short-term fluctuation rather than a reflection of ARM's long-term growth potential.

02.00.2026 - ARM Stock was down 1.0%

• ARM experienced a bearish movement today following a downgrade to Sell from Neutral, with a price target of $120. This downgrade was based on limited exposure to the AI cycle and challenges in non-traditional markets despite strong Q2 2026 performance.
• Despite ARM's strong Q3 performance, which exceeded earnings estimates and showed significant revenue growth, the downgrade seems to have influenced the market sentiment negatively.
• The increased stakes by Pacer Advisors Inc., Cwm LLC, and Baker Chad R in ARM Holdings PLC indicate confidence in the company's long-term prospects, but the overall market reacted to the downgrade, leading to the bearish movement in the stock today.
• Investors might be cautious due to the perceived limited upside potential in the AI sector and the challenges ARM faces in non-traditional markets, as highlighted in the recent analysis.

03.01.2026 - ARM Stock was down 5.1%

• Despite reporting its strongest-ever quarter and securing major AI deals with tech giants like Meta, Apple, AWS, and Google, ARM Holdings saw a 6.8% drop in its stock price. This could be attributed to:
• The stock's rich valuation and the concentration of new upside drivers presenting risks for investors, leading to profit-taking.
• Wealth Enhancement Advisory Services LLC and Y Intercept Hong Kong Ltd reducing their stakes in ARM Holdings, which might have signaled a lack of confidence in the stock's short-term performance.
• Analysts maintaining a "Moderate Buy" consensus with an average price target of $169.52, indicating a potential disconnect between market expectations and actual performance.
• The company's deepening role in big tech AI chips, highlighted by a long-term deal with Apple, may not have been enough to offset broader market concerns or profit motivations among investors.