ARM (NASDAQ:ARM) Sees Large Volume Increase Following Analyst Upgrade

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM) saw strong trading volume on Wednesday after Royal Bank Of Canada raised their price target on the stock from $130.00 to $175.00. Royal Bank Of Canada currently has an outperform rating on the stock. 11,101,333 shares were traded during trading, an increase of 77% from the previous session’s volume of 6,272,030 shares.The stock last traded at $157.34 and had previously closed at $134.96.

A number of other equities analysts have also recently commented on the stock. UBS Group dropped their price objective on shares of ARM from $175.00 to $170.00 and set a “buy” rating for the company in a research note on Thursday, February 5th. KeyCorp restated an “overweight” rating on shares of ARM in a research report on Thursday, February 5th. Bank of America reaffirmed a “neutral” rating and set a $120.00 target price on shares of ARM in a research note on Tuesday, January 13th. TD Cowen decreased their price target on ARM from $190.00 to $165.00 and set a “buy” rating for the company in a research note on Thursday, February 5th. Finally, Wells Fargo & Company upped their price objective on ARM from $150.00 to $165.00 and gave the company an “overweight” rating in a research report on Wednesday. Eighteen equities research analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $166.78.

Key Stories Impacting ARM

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Arm unveiled the AGI CPU, its first in‑house data‑center chip designed for “agentic AI,” and CEO guidance included multi‑billion dollar/quoted $15B–$25B revenue potential by 2031 — a clear growth thesis for investors. CNBC: Arm jumps 13% in premarket after saying first in-house chip set to generate $15 billion in revenue
• Positive Sentiment: Meta is signed as the launch customer and Arm cited other large cloud/AI partners, giving credibility to early demand for the new CPU and easing go‑to‑market concerns. Meta press release: Meta Partners With Arm
• Positive Sentiment: Multiple brokerages raised targets and ratings this morning (notable calls: Guggenheim, RBC, Wells Fargo, Raymond James), signaling institutional bullishness and supporting momentum in the stock. TickerReport: analyst coverage roundup
• Positive Sentiment: Broader market tailwinds (VIX pullback, Nasdaq strength) are lifting tech names, amplifying the rally in high‑beta stocks like ARM. 247WallSt: VIX Crashes
• Neutral Sentiment: Coverage notes that incumbents (Nvidia, Intel, AMD) are watching closely; early takes vary on whether Arm’s entry will meaningfully displace market leaders — may be more of a multi‑year story than an immediate share‑take event. Barron’s: What Arm’s First AI Chip Means for Nvidia
• Negative Sentiment: Strategic risk — moving from IP licensing to selling silicon introduces manufacturing, capital and margin risks and could complicate partner relationships; some analysts remain cautious (Deutsche Bank maintained a “hold” despite raising its target). Reuters: Arm jumps as new AI chip to drive billions

Institutional Trading of ARM

Several large investors have recently added to or reduced their stakes in ARM. Capital Research Global Investors purchased a new stake in shares of ARM in the 3rd quarter valued at $243,098,000. Northwestern Mutual Wealth Management Co. increased its holdings in ARM by 2,623.5% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 1,671,787 shares of the company’s stock valued at $182,743,000 after buying an additional 1,610,403 shares in the last quarter. Hyperion Asset Management Ltd purchased a new stake in shares of ARM during the 3rd quarter worth about $202,980,000. Schroder Investment Management Group increased its position in shares of ARM by 41.7% in the second quarter. Schroder Investment Management Group now owns 4,745,957 shares of the company’s stock valued at $767,611,000 after buying an additional 1,396,684 shares in the last quarter. Finally, Employees Provident Fund Board acquired a new stake in ARM in the 4th quarter valued at $120,241,000. Hedge funds and other institutional investors own 7.53% of the company’s stock.

ARM Trading Up 18.1%

The company has a market cap of $168.37 billion, a PE ratio of 210.60, a price-to-earnings-growth ratio of 9.45 and a beta of 4.11. The firm’s fifty day moving average is $119.67 and its 200 day moving average is $134.01.

ARM (NASDAQ:ARM) last released its quarterly 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. ARM had a net margin of 17.15% and a return on equity of 14.01%. The firm had revenue of $1.24 billion during the quarter, compared to the consensus estimate of $1.23 billion. During the same quarter in the prior year, the firm earned $0.39 EPS. The company’s revenue for the quarter was up 26.3% on a year-over-year basis. ARM has set its Q4 2026 guidance at 0.540-0.620 EPS. As a group, sell-side analysts anticipate that ARM Holdings PLC Sponsored ADR will post 0.9 EPS for the current fiscal year.

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.