ARM (NASDAQ:ARM) Shares Gap Up Following Analyst Upgrade

Shares of ARM Holdings PLC Sponsored ADR (NASDAQ:ARM) gapped up prior to trading on Friday after HSBC upgraded the stock from a reduce rating to a buy rating. The stock had previously closed at $129.82, but opened at $136.90. HSBC now has a $205.00 price target on the stock, up from their previous price target of $90.00. ARM shares last traded at $134.7620, with a volume of 3,071,596 shares changing hands.

Several other equities research analysts have also commented on the stock. Wells Fargo & Company reduced their price target on shares of ARM from $160.00 to $150.00 and set an “overweight” rating for the company in a research report on Thursday, February 5th. Susquehanna raised shares of ARM from a “neutral” rating to a “positive” rating and set a $150.00 price objective on the stock in a report on Wednesday, January 21st. Royal Bank Of Canada cut their target price on shares of ARM from $140.00 to $130.00 and set an “outperform” rating for the company in a research report on Thursday, February 5th. JPMorgan Chase & Co. reduced their target price on shares of ARM from $180.00 to $145.00 and set an “overweight” rating for the company in a report on Thursday, February 5th. Finally, Jefferies Financial Group set a $170.00 price target on shares of ARM in a research report on Thursday, February 5th. Seventeen equities research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $162.82.

ARM News Summary

Here are the key news stories impacting ARM this week:

• Positive Sentiment: HSBC upgraded ARM from “reduce” to “buy” and raised its price target sharply to $205, driving renewed enthusiasm that ARM’s royalty and licensing growth from AI chips could be substantially larger than previously modeled.
  Arm Holdings stock surges after HSBC’s buy upgrade to $205
  Arm Stock Jumps on HSBC Upgrade — Sees Massive Upside on AI Chip Growth
  Arm shares jump 7% on HSBC upgrade as AI demand boosts outlook
• Positive Sentiment: Bank of America and other analysts flag a strategic shift: ARM may unveil an in‑house standalone merchant CPU and pursue full‑chiplet designs that expand its addressable market into agentic/AI CPUs — a move that could materially raise long‑term revenue and royalty upside if adopted by hyperscalers.
  Arm Holdings eyes full-chiplet CPUs, but analysts warn near-term headwinds remain
• Positive Sentiment: Independent analyst commentary argues ARM could benefit disproportionately as CPUs (including ARM‑based designs) become central to AI data centers, supporting upside forecasts and higher valuations from multiple research notes.
  Arm’s stock could rocket 50% as Wall Street wakes up to a ‘game-changing’ trend, analyst says
• Neutral Sentiment: Short‑interest data is mixed and noisy: a reported February decline in short interest contrasts with other notes showing odd/zero figures for March — not a clear driver either way but worth monitoring for volatility signals.
  ARM Holdings PLC Sponsored ADR (NASDAQ:ARM) Short Interest Down 13.5% in February
• Negative Sentiment: Malaysia’s anti‑corruption agency opened a probe into a roughly $250–279m government deal with ARM, raising regulatory, reputational and government‑contract risk in Southeast Asia; this is a headline risk that could affect sentiment if findings escalate.
  Malaysia Probe Puts Spotlight On Arm Holdings Valuation And Government Deals

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the stock. GAMMA Investing LLC raised its stake in ARM by 126.0% during the 3rd quarter. GAMMA Investing LLC now owns 174 shares of the company’s stock worth $25,000 after acquiring an additional 97 shares during the period. Grey Fox Wealth Advisors LLC bought a new position in shares of ARM in the third quarter worth approximately $28,000. FWL Investment Management LLC bought a new position in shares of ARM in the second quarter worth approximately $34,000. Mcguire Capital Advisors Inc. purchased a new stake in shares of ARM in the fourth quarter worth $30,000. Finally, Strategic Investment Solutions Inc. IL raised its position in shares of ARM by 238.1% during the 3rd quarter. Strategic Investment Solutions Inc. IL now owns 284 shares of the company’s stock valued at $40,000 after purchasing an additional 200 shares during the period. 7.53% of the stock is currently owned by institutional investors.

ARM Stock Performance

The company’s 50-day moving average price is $118.62 and its 200 day moving average price is $134.00. The stock has a market capitalization of $139.83 billion, a P/E ratio of 176.47, a P/E/G ratio of 9.13 and a beta of 4.11.

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

ARM Company Profile

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.