ARM (NASDAQ:ARM) Sees Unusually-High Trading Volume on Analyst Upgrade

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM) saw unusually-high trading volume on Wednesday after Royal Bank Of Canada raised their price target on the stock from $130.00 to $175.00. Royal Bank Of Canada currently has an outperform rating on the stock. Approximately 11,101,333 shares were traded during trading, an increase of 77% from the previous session’s volume of 6,272,030 shares.The stock last traded at $157.34 and had previously closed at $134.96.

Several other research analysts have also weighed in on ARM. HSBC upgraded ARM from a “reduce” rating to a “buy” rating and increased their price objective for the stock from $90.00 to $205.00 in a research report on Friday, March 20th. Bank of America reiterated a “neutral” rating and set a $120.00 target price on shares of ARM in a report on Tuesday, January 13th. The Goldman Sachs Group cut shares of ARM from a “neutral” rating to a “sell” rating and decreased their price target for the company from $160.00 to $120.00 in a research report on Monday, December 15th. KeyCorp reaffirmed an “overweight” rating on shares of ARM in a research report on Thursday, February 5th. Finally, Guggenheim increased their price objective on ARM from $201.00 to $240.00 and gave the company a “buy” rating in a research note on Wednesday. Eighteen equities research analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $166.78.

More ARM News

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Arm unveiled the AGI CPU, its first in‑house data‑center chip designed for “agentic AI,” and CEO guidance included multi‑billion dollar/quoted $15B–$25B revenue potential by 2031 — a clear growth thesis for investors. CNBC: Arm jumps 13% in premarket after saying first in-house chip set to generate $15 billion in revenue
• Positive Sentiment: Meta is signed as the launch customer and Arm cited other large cloud/AI partners, giving credibility to early demand for the new CPU and easing go‑to‑market concerns. Meta press release: Meta Partners With Arm
• Positive Sentiment: Multiple brokerages raised targets and ratings this morning (notable calls: Guggenheim, RBC, Wells Fargo, Raymond James), signaling institutional bullishness and supporting momentum in the stock. TickerReport: analyst coverage roundup
• Positive Sentiment: Broader market tailwinds (VIX pullback, Nasdaq strength) are lifting tech names, amplifying the rally in high‑beta stocks like ARM. 247WallSt: VIX Crashes
• Neutral Sentiment: Coverage notes that incumbents (Nvidia, Intel, AMD) are watching closely; early takes vary on whether Arm’s entry will meaningfully displace market leaders — may be more of a multi‑year story than an immediate share‑take event. Barron’s: What Arm’s First AI Chip Means for Nvidia
• Negative Sentiment: Strategic risk — moving from IP licensing to selling silicon introduces manufacturing, capital and margin risks and could complicate partner relationships; some analysts remain cautious (Deutsche Bank maintained a “hold” despite raising its target). Reuters: Arm jumps as new AI chip to drive billions

Institutional Investors Weigh In On ARM

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Schroder Investment Management Group grew its holdings in shares of ARM by 41.7% during the second quarter. Schroder Investment Management Group now owns 4,745,957 shares of the company’s stock worth $767,611,000 after purchasing an additional 1,396,684 shares during the last quarter. Morgan Stanley boosted its holdings in shares of ARM by 1.2% in the fourth 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 in the last quarter. Invesco Ltd. increased its stake in shares of ARM by 36.9% during the fourth quarter. Invesco Ltd. now owns 2,426,850 shares of the company’s stock worth $265,279,000 after acquiring an additional 654,727 shares during the period. Coatue Management LLC increased 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. Finally, Wellington Management Group LLP lifted its holdings in shares of ARM by 41.6% in the 4th quarter. Wellington Management Group LLP now owns 2,149,159 shares of the company’s stock valued at $234,925,000 after buying an additional 631,576 shares during the period. Institutional investors and hedge funds own 7.53% of the company’s stock.

ARM Price Performance

The stock has a 50 day moving average of $119.67 and a two-hundred day moving average of $134.01. The stock has a market capitalization of $168.37 billion, a PE ratio of 210.60, a P/E/G ratio of 9.45 and a beta of 4.11.

ARM (NASDAQ:ARM) last issued its earnings results on Wednesday, February 4th. The company reported $0.43 EPS for the quarter, topping the consensus estimate of $0.41 by $0.02. ARM had a net margin of 17.15% and a return on equity of 14.01%. The company had revenue of $1.24 billion for the quarter, compared to analyst estimates of $1.23 billion. During the same period in the previous year, the firm earned $0.39 EPS. The business’s revenue was up 26.3% on a year-over-year basis. ARM has set its Q4 2026 guidance at 0.540-0.620 EPS. As a group, research analysts predict that ARM Holdings PLC Sponsored ADR will post 0.9 earnings per share for the current fiscal year.

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.