ARM (NASDAQ:ARM) Stock Price Up 13.6% on Earnings Beat

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM) was up 13.6% during mid-day trading on Wednesday after the company announced better than expected quarterly earnings. The stock traded as high as $239.50 and last traded at $237.30. Approximately 20,472,451 shares changed hands during mid-day trading, an increase of 175% from the average daily volume of 7,433,461 shares. The stock had previously closed at $208.84.

The company reported $0.60 earnings per share for the quarter, beating analysts’ consensus estimates of $0.58 by $0.02. The business had revenue of $1.49 billion during the quarter, compared to the consensus estimate of $1.47 billion. ARM had a net margin of 17.15% and a return on equity of 14.01%.

Key ARM News

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Sector rally after AMD’s strong forecast lifted chipmakers, giving ARM momentum as investors rotate into AI and CPU plays. AMD forecast sparks AI‑driven rally in US chipmaker stocks
• Positive Sentiment: Mizuho raised its price target to $255 and kept an “outperform” rating, signaling incremental analyst conviction that supports upside. Benzinga
• Positive Sentiment: Unusually large call‑option activity — ~87,690 calls traded (≈+35% vs. typical daily call volume) — indicates speculative bullish positioning ahead of earnings.
• Positive Sentiment: Company is accelerating a strategic shift into in‑house AI/data‑center CPUs (including a first AGI/data‑center CPU and IBM collaboration), which could materially expand addressable market and revenue if executed. How Arm’s First In‑House AI Data Center CPU Could Impact Arm Holdings (ARM) Investors
• Neutral Sentiment: Earnings day acts as the immediate catalyst — results and guidance will likely drive volatility as the market tests whether top‑line and AI traction justify the premium valuation. Arm Is Shifting Its Business Model. Earnings Will Be a Test for the Stock.
• Neutral Sentiment: Market commentary expects a sizable post‑earnings move, increasing short‑term trading risk even if fundamentals remain intact. How Much Is Arm Holdings Stock Expected to Move After Earnings?
• Negative Sentiment: Strategic shift into making proprietary data‑center CPUs could pit ARM against some licensees (customers), creating potential channel conflict and execution/partner risk. Arm Is Shifting Its Business Model. Earnings Will Be a Test for the Stock.
• Negative Sentiment: Technical and market‑commentary warnings suggest a sharp downside is possible if earnings disappoint or guidance is weak. Arm Holdings Stock May Plunge Following Results (Technical Analysis)
• Negative Sentiment: Minor headwind reported: TSMC’s $231M exit note created some headlines, though the move hasn’t stopped buyer interest. Arm shares climb despite TSMC’s $231 million exit

Wall Street Analysts Forecast Growth

A number of analysts have recently weighed in on ARM shares. Needham & Company LLC upgraded ARM from a “hold” rating to a “buy” rating and set a $200.00 price target on the stock in a research report on Thursday, March 26th. Bank of America restated a “neutral” rating and set a $120.00 price objective on shares of ARM in a research note on Tuesday, January 13th. HSBC raised ARM from a “reduce” rating to a “buy” rating and increased their target price for the stock from $90.00 to $205.00 in a research report on Friday, March 20th. The Goldman Sachs Group raised their target price on ARM from $110.00 to $125.00 and gave the company a “sell” rating in a research note on Thursday, April 9th. Finally, JPMorgan Chase & Co. lowered their price target on shares of ARM from $180.00 to $145.00 and set an “overweight” rating for the company in a research report on Thursday, February 5th. Eighteen analysts have rated the stock with a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, ARM currently has an average rating of “Moderate Buy” and a consensus target price of $177.75.

Insider Buying and Selling

In related news, CEO Rene A. Haas sold 23,867 shares of the firm’s stock in a transaction that occurred on Wednesday, March 25th. The stock was sold at an average price of $161.17, for a total value of $3,846,644.39. Following the sale, the chief executive officer directly owned 290,965 shares in the company, valued at $46,894,829.05. This trade represents a 7.58% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO Jason Child sold 21,280 shares of ARM stock in a transaction on Wednesday, March 25th. The shares were sold at an average price of $148.37, for a total value of $3,157,313.60. Following the sale, the chief financial officer directly owned 174,706 shares in the company, valued at $25,921,129.22. The trade was a 10.86% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 83,712 shares of company stock valued at $13,614,730 over the last three months.

Institutional Investors Weigh In On ARM

A number of hedge funds and other institutional investors have recently modified their holdings of ARM. Assetmark Inc. lifted its holdings in ARM by 24.7% in the first quarter. Assetmark Inc. now owns 81,627 shares of the company’s stock worth $12,349,000 after purchasing an additional 16,149 shares during the period. SteelPeak Wealth LLC acquired a new position in ARM during the 1st quarter valued at about $320,000. Independent Financial Group LLC bought a new stake in shares of ARM during the 1st quarter worth about $1,377,000. Westover Capital Advisors LLC acquired a new stake in shares of ARM in the 1st quarter worth approximately $272,000. Finally, Wealthfront Advisers LLC acquired a new stake in shares of ARM in the 1st quarter worth approximately $394,000. 7.53% of the stock is currently owned by institutional investors.

ARM Price Performance

The firm has a market capitalization of $250.71 billion, a P/E ratio of 316.40, a PEG ratio of 9.16 and a beta of 3.40. The firm’s fifty day moving average price is $150.26 and its 200-day moving average price is $137.61.

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.