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Last updated 6 minutes ago

ARM·Arm Holdings plc

$.
-. (-.%)
After Hours
High
$340.05
Open
$323.51
Market Cap
348.85B
52W High
$452.70
Low
$317.88
P. Close
$323.60
P/E
385.90
52W Low
$100.02
Fwd P/E
104.97
DailyIQ Est.
$317.59
Technical Score (1D)
59
BUY
News Sentiment
89
BULLISH
ARM’s valuation is being re‑examined after a buy rating was issued with a $544 target, implying a 64 % upside to 2031, driven by projected Armv9/CSS royalty streams and the company’s expanding AI CPU lineup. The same analysis notes that the premium may still be incomplete, citing competitive pressure and execution delays as risks that could temper the upside over the next ten trading days. Meanwhile, ARM reported a 29 % year‑over‑year jump in licensing and royalty revenue, with royalties up 11 %, underscoring robust demand across AI, cloud, mobile and custom silicon markets. The company also unveiled its first AGI CPU aimed at data‑center AI workloads, positioning it in the high‑performance AI silicon space and potentially accelerating the adoption of its IP in new AI platforms. ARM’s shares have already risen substantially in the first half of 2026, reflecting heightened investor interest in AI‑driven chip demand and its core role in Apple’s mobile processors, but the rally has also pushed the firm to a forward P/E of 155×, raising concerns about overvaluation. The company has scheduled its first‑quarter fiscal 2027 earnings release for July 29, 2026, with a post‑market conference call at 14:00 PT, which analysts expect to provide updated revenue growth, margin expectations and details on the AGI CPU deployment. In the broader market, ARM was highlighted as an upside driver during the S&P 500 rally, but no new earnings data were disclosed, and geopolitical tensions such as U.S.–Iran developments could still influence tech sector sentiment in the coming days. A recent downgrade to Strong Sell by a rating agency, citing an extreme valuation, SoftBank’s margin‑loan risk, and potential AI CPU execution threats, adds a layer of liquidity and competitive risk that could materialize if the company fails to meet its AI CPU milestones. Traders should therefore monitor the July 29 earnings release for guidance on licensing revenue, royalty growth, and AGI CPU rollout, as well as any regulatory or geopolitical developments that could affect the semiconductor supply chain. If the earnings guidance confirms the projected royalty streams and AI CPU adoption, the valuation premium may be justified; if not, the stock could see a correction as the market reassesses the upside potential.
Earnings Summary
Arm Holdings is a leading designer and licensor of CPU technology, providing core IP to semiconductor manufacturers and OEMs across automotive, computing infrastructure, consumer electronics, and IoT markets. As a subsidiary of SoftBank Group, Arm’s low‑power, high‑efficiency architecture underpins billions of devices worldwide. Not enough information is available to compare the last two quarters with prior quarters, as only Q1 2025 and Q4 2026 actual results are provided and Q1 2027 figures are estimates. The two reported quarters show consistent earnings beats, with EPS rising from $0.55 in Q1 2025 to $0.60 in Q4 2026 and revenue increasing from $1.241 billion to $1.49 billion, indicating a 20% revenue growth and a 9% EPS growth. This pattern suggests steady financial performance amid a growing licensing base. Recent analyst upgrades, including a $470 target from UBS and a $1,219 target from BNP Paribas, underscore bullish sentiment driven by expanding automotive and edge‑computing customer base and AI‑driven demand for ARM cores. Insider activity and institutional interest, such as Druckenmiller’s 0.5 % stake, further highlight market attention, while macro‑economic concerns and regulatory supply‑chain risks remain potential headwinds. Watch for the next earnings release to gauge new licensing deals and product launches, particularly in automotive and AI data‑center segments, as these will validate the higher valuation; monitor any regulatory updates affecting global supply chains and macro‑economic sentiment that could impact ARM’s short‑term performance.

EPS

EstBeatMiss
$0.37$0.44$0.50$0.57$0.63Q1'25Q4'26Q1'27
QtrEstActual+/−
Q1'27$0.40 - -
Q4'26$0.59$0.60+2.0%
Q1'25$0.52$0.55+5.0%

Revenue

EstBeatMiss
$1.2B$1.3B$1.4B$1.4B$1.5BQ1'25Q4'26Q1'27
QtrEstActual+/−
Q1'27$1.3B - -
Q4'26$1.5B$1.5B+0.3%
Q1'25 - $1.2B -
Full Earnings BreakdownEstimates, actuals, guidance, and historical context
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Market Data

ARM Stock Snapshot

ARM is currently trading at $324.68, giving Arm Holdings plc a market cap of 348.85B and a P/E ratio of 385.9. Today's range spans $317.88–$340.05, with shares opening at $323.51 and moving up $1.08 (0.3%) from the prior close. DailyIQ's technical score sits at 59/100 (HOLD) with a news sentiment reading of 89/100.

Over the past year ARM has traded between $100.02 and $452.70 - the current price is +224.6% off the 52-week low and -28.3% from the high. 44 analysts cover the stock with a Buy consensus and a mean 12-month target of $298.84 (range $125.00–$500.00), implying downside of -8.0%.

Sector rotation context matters for ARM's HOLD phase (59/100, HOLD): in Technology, large-cap names (348.85B market cap) with neutral technicals and bullish sentiment (89/100) are often in a staging area ahead of a rotation trade. The current P/E ratio stands at 385.9. Price: $324.68 (in the middle of its 52-week range in $100.02–$452.70). When sector flows resume, names that consolidated cleanly rather than correcting sharply tend to lead the next leg - and ARM's current setup fits that pattern.

Portfolio construction in Technology often uses large-cap names like ARM as tactical swing positions during neutral phases: cheap enough to overweight, liquid enough to exit quickly, and large enough to provide meaningful sector beta. The current 59/100 (HOLD) at $324.68 (in the middle of its 52-week range) and bullish sentiment (89/100) frame the position as a catalyst play within the $100.02–$452.70 annual range rather than a directional bet.