ARM (NASDAQ:ARM) Stock Price Up 8.6% – Time to Buy?

Arm Holdings PLC Sponsored ADR (NASDAQ:ARM) shares traded up 8.6% during trading on Thursday . The company traded as high as $267.00 and last traded at $264.90. Approximately 6,077,201 shares traded hands during mid-day trading, a decline of 22% from the average daily volume of 7,765,334 shares. The stock had previously closed at $243.98.

Key ARM News

Here are the key news stories impacting ARM this week:

• Positive Sentiment: CEO Rene Haas said demand for Arm’s new AI chip is exceptionally strong and reiterated greater confidence in reaching $2 billion in customer demand. The comments helped drive renewed enthusiasm for Arm’s data-center opportunity. Arm CEO says he’s more confident its new AI chip can meet a loftier $2B revenue goal
• Positive Sentiment: Arm is strengthening its global supply-chain network as demand for data-center processors grows, potentially positioning the company to capture more AI-related licensing and chip revenue. Why Arm Stock Popped Today
• Positive Sentiment: Analysts continue raising expectations for Arm’s AI-related growth, while hyperscalers are reportedly lining up for Arm-based silicon. The long-term AI thesis remains intact despite recent volatility. Volatility Aside, ARM’s AI Thesis Is Untouched
• Positive Sentiment: Arm’s CEO also said chip demand is “off the charts,” suggesting customer demand is not the primary limitation to growth. If production capacity expands, the constraint could become an opportunity for higher revenue. Arm CEO Rene Haas cites strong demand amid chip supply constraints
• Neutral Sentiment: SoftBank increased a margin loan backed by Arm shares to $25 billion to fund its expanding AI investments. The move highlights the value of Arm’s rally but could create future share-sale or collateral risks if the stock weakens. SoftBank Raises Arm Margin Loan to $25 Billion as AI Bets Grow
• Negative Sentiment: Articles comparing Arm with Intel emphasize that investors must weigh Arm’s powerful AI growth prospects against its demanding valuation and substantial volatility. This may limit further gains unless execution matches expectations. Arm vs. Intel: Which Technology Stock Is a Better Buy in 2026?

Analysts Set New Price Targets

A number of research analysts recently weighed in on ARM shares. Wells Fargo & Company reduced their price objective on ARM from $350.00 to $280.00 and set an “overweight” rating for the company in a research report on Thursday, July 30th. Raymond James Financial reissued an “outperform” rating on shares of ARM in a research note on Tuesday, August 25th. Needham & Company LLC restated a “buy” rating and set a $255.00 price target on shares of ARM in a report on Thursday, July 30th. Sanford C. Bernstein set a $500.00 price target on ARM in a research report on Wednesday, June 17th. Finally, Guggenheim reiterated a “buy” rating and issued a $255.00 price target on shares of ARM in a research note on Thursday, July 30th. One investment analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $305.72.

ARM Stock Performance

The firm has a market cap of $294.37 billion, a PE ratio of 284.14, a price-to-earnings-growth ratio of 7.86 and a beta of 3.89. The stock has a 50-day simple moving average of $259.66 and a two-hundred day simple moving average of $247.14.

ARM (NASDAQ:ARM) last announced its quarterly earnings results on Thursday, July 30th. The company reported $0.45 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.40 by $0.05. ARM had a net margin of 20.25% and a return on equity of 12.24%. The firm had revenue of $1.29 billion for the quarter, compared to the consensus estimate of $1.26 billion. During the same quarter last year, the firm posted $0.35 EPS. The business’s quarterly revenue was up 22.4% compared to the same quarter last year. As a group, sell-side analysts anticipate that Arm Holdings PLC Sponsored ADR will post 1.15 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, CFO Jason Child sold 10,400 shares of the stock in a transaction on Thursday, August 27th. The stock was sold at an average price of $255.33, for a total transaction of $2,655,432.00. Following the transaction, the chief financial officer directly owned 163,832 shares of the company’s stock, valued at $41,831,224.56. This represents a 5.97% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the company. Paragon Capital Management Inc. increased its stake in shares of ARM by 40.4% in the 1st quarter. Paragon Capital Management Inc. now owns 10,609 shares of the company’s stock worth $1,605,000 after purchasing an additional 3,055 shares in the last quarter. Mitsubishi UFJ Morgan Stanley Securities Co. Ltd. purchased a new position in ARM during the fourth quarter valued at $955,000. SBI Okasan Asset Management Co.Ltd. bought a new stake in ARM during the fourth quarter valued at about $699,000. Capital Research Global Investors grew its holdings in ARM by 5.1% during the fourth quarter. Capital Research Global Investors now owns 1,805,110 shares of the company’s stock valued at $197,332,000 after purchasing an additional 86,978 shares during the period. Finally, BNP Paribas increased its position in ARM by 36.3% in the fourth quarter. BNP Paribas now owns 13,425 shares of the company’s stock worth $1,468,000 after buying an additional 3,573 shares in the last quarter. Institutional investors own 7.53% of the company’s stock.

About ARM

Arm Holdings plc is a semiconductor and software intellectual property company headquartered in Cambridge, England. Rather than manufacturing chips, Arm develops processor architectures and technology designs that it licenses to semiconductor companies, device manufacturers and other technology businesses for use in their own products.

Arm’s portfolio includes central processing unit (CPU) architectures and processor cores, graphics processing units (GPUs), systems IP, interconnect technology, security solutions and related software and development tools.