ARM Target of Unusually Large Options Trading (NASDAQ:ARM)

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM) was the target of some unusual options trading activity on Wednesday. Stock investors purchased 78,225 call options on the company. This represents an increase of approximately 59% compared to the average volume of 49,150 call options.

Hedge Funds Weigh In On ARM

Institutional investors and hedge funds have recently modified their holdings of the business. GAMMA Investing LLC boosted its position in ARM by 126.0% during the third quarter. GAMMA Investing LLC now owns 174 shares of the company’s stock worth $25,000 after purchasing an additional 97 shares in the last quarter. Grey Fox Wealth Advisors LLC acquired a new position in shares of ARM during the 3rd quarter worth approximately $28,000. FWL Investment Management LLC acquired a new position in shares of ARM during the 2nd quarter worth approximately $34,000. Mcguire Capital Advisors Inc. purchased a new position in shares of ARM during the 4th quarter valued at approximately $30,000. Finally, Strategic Investment Solutions Inc. IL grew its stake in ARM by 238.1% in the 3rd quarter. Strategic Investment Solutions Inc. IL now owns 284 shares of the company’s stock valued at $40,000 after acquiring an additional 200 shares during the period. Hedge funds and other institutional investors own 7.53% of the company’s stock.

More ARM News

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Arm unveiled its first in‑house AGI CPU and said the product could add billions to revenue, framing a multi‑billion dollar growth pathway from licensing to selling silicon. Arm unveils new AI chip, expects it to add billions in annual revenue
• Positive Sentiment: Major tech customers (Meta among them, plus other cloud/AI partners named) are signed up as launch customers — validating demand and reducing go‑to‑market risk for initial deployments. Meta Partners With Arm to Develop New Class of Data Center Silicon
• Positive Sentiment: Sell‑side sentiment turned more bullish: multiple firms raised price targets and ratings (examples include Guggenheim, RBC, Wells Fargo and Raymond James), reinforcing the upside narrative. Analyst upgrades and price target changes
• Positive Sentiment: Unusually large options activity (tens of thousands of calls traded) and heavy equity volume indicate speculative and institutional positioning on the new‑chip story.
• Neutral Sentiment: Some coverage frames the move as the start of an “Nvidia‑like” chapter — a potential long‑term re‑rating if Arm captures CPU share in agentic AI — but that’s a multi‑year thesis. Arm’s stock shoots toward best day in a year
• Neutral Sentiment: Some analysts and competitors see Arm’s entry as incremental to the market rather than an immediate threat to Nvidia’s dominant position — the market will judge based on performance, power efficiency and ecosystem traction. Nvidia Stock Is Rising. Why Arm’s New AI Chip Is Not a Threat.
• Negative Sentiment: Execution and margin risk: moving from an IP/licensing model to selling silicon requires capital, manufacturing partnerships and profitable scale — missteps could pressure margins and earnings. Media coverage notes this is a decisive break from Arm’s historic model. Arm Holdings, in Break From Past, Will Sell Its Own Computer Chips
• Negative Sentiment: High valuation and volatility amplify downside risk: Arm’s elevated P/E and high beta mean expectations are steep — misses or execution delays could trigger sharp pullbacks.
• Negative Sentiment: Initial market reaction included intra‑day volatility (an initial dip on the announcement in some sessions), highlighting investor skepticism alongside the bullish repositioning. ARM Rallies $15B Revenue Guidance Through 2031 & New Data Center Chip

ARM Trading Up 18.3%

ARM stock traded up $24.76 during mid-day trading on Wednesday, hitting $159.72. The company had a trading volume of 22,600,870 shares, compared to its average volume of 6,480,385. The company has a market capitalization of $168.74 billion, a price-to-earnings ratio of 213.31, a P/E/G ratio of 9.45 and a beta of 4.11. ARM has a 12-month low of $80.00 and a 12-month high of $183.16. The company’s fifty day moving average is $119.67 and its 200-day moving average is $134.01.

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

Analyst Ratings Changes

A number of brokerages have recently weighed in on ARM. Evercore cut their price objective on ARM from $215.00 to $170.00 and set an “outperform” rating on the stock in a report on Thursday, February 5th. Rosenblatt Securities reissued a “buy” rating and set a $175.00 price target on shares of ARM in a research report on Wednesday. HSBC upgraded shares of ARM from a “reduce” rating to a “buy” rating and lifted their price objective for the company from $90.00 to $205.00 in a research note on Friday, March 20th. Mizuho cut their price objective on shares of ARM from $190.00 to $160.00 and set an “outperform” rating on the stock in a research note on Thursday, February 5th. Finally, UBS Group decreased their target price on shares of ARM from $175.00 to $170.00 and set a “buy” rating for the company in a research report on Thursday, February 5th. Eighteen research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $166.78.

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.