JPMorgan Chase & Co. Issues Pessimistic Forecast for ARM (NASDAQ:ARM) Stock Price

ARM (NASDAQ:ARM) had its price target decreased by stock analysts at JPMorgan Chase & Co. from $180.00 to $145.00 in a research report issued on Thursday,Benzinga reports. The brokerage currently has an “overweight” rating on the stock. JPMorgan Chase & Co.‘s price objective indicates a potential upside of 17.22% from the company’s previous close.

Several other equities research analysts have also weighed in on the company. Royal Bank Of Canada reduced their price objective on ARM from $140.00 to $130.00 and set an “outperform” rating for the company in a research note on Thursday. 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 report on Thursday. Rosenblatt Securities cut their price objective on ARM from $180.00 to $175.00 and set a “buy” rating on the stock in a report on Thursday. UBS Group reduced 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. Finally, New Street Research raised shares of ARM from a “neutral” rating to a “buy” rating in a research report on Thursday. Sixteen investment analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $160.81.

ARM Trading Up 11.6%

NASDAQ:ARM opened at $123.70 on Thursday. The company has a 50-day moving average of $117.14 and a 200-day moving average of $138.07. The firm has a market cap of $130.69 billion, a price-to-earnings ratio of 164.93, a price-to-earnings-growth ratio of 6.64 and a beta of 4.35. ARM has a twelve month low of $80.00 and a twelve month high of $183.16.

ARM (NASDAQ:ARM) last released its earnings results on Wednesday, February 4th. The company reported $0.43 EPS for the quarter, beating the consensus estimate of $0.41 by $0.02. The business had revenue of $1.24 billion during the quarter, compared to analyst estimates of $1.23 billion. ARM had a net margin of 17.15% and a return on equity of 14.01%. The business’s quarterly revenue was up 26.3% on a year-over-year basis. During the same period in the prior year, the business earned $0.39 earnings per share. ARM has set its Q4 2026 guidance at 0.540-0.620 EPS. On average, research analysts forecast that ARM will post 0.9 earnings per share for the current year.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. GAMMA Investing LLC lifted its position in ARM by 126.0% in the 3rd quarter. GAMMA Investing LLC now owns 174 shares of the company’s stock worth $25,000 after buying an additional 97 shares in the last quarter. Huntington National Bank acquired a new position in shares of ARM in the second quarter worth $30,000. Grey Fox Wealth Advisors LLC purchased a new stake in shares of ARM during the third quarter worth $28,000. FWL Investment Management LLC acquired a new stake in ARM during the second quarter valued at $34,000. Finally, Strategic Investment Solutions Inc. IL grew its stake in ARM by 238.1% in the third 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 in the last quarter. 7.53% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting ARM

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Q3 results beat top- and bottom-line estimates; revenue jumped ~26%, supporting the narrative of durable growth and stronger AI-related demand. Guidance for Q4 EPS was given (0.540–0.620), helping investor confidence. Is ARM Stock a Buy, Hold, or Sell After Stellar Q3 Earnings?
• Positive Sentiment: Analysts publicly praised the results and highlighted ARM’s AI potential, which supported intraday buying interest. Arm rallies after analysts praise results, citing AI potential
• Positive Sentiment: CEO Rene Haas emphasized rapid growth in ARM’s data-center business (“exploding”), reinforcing the long-term AI/data-center growth thesis. Arm CEO Says Data Center Business Is ‘Exploding’
• Positive Sentiment: Unusually large call-option activity — ~90,892 calls traded (≈+38% vs. average) — indicates speculative bullish positioning that can amplify upward moves in the underlying stock.
• Neutral Sentiment: Multiple brokerages trimmed price targets (JPMorgan, TD Cowen, Wells Fargo, Mizuho, Rosenblatt) but largely retained buy/overweight ratings; the cuts reflect stretched valuation vs. near-term licensing/macro risk while keeping upside cases intact.
• Neutral Sentiment: One shop upgraded ARM to buy (New Street), adding to mixed analyst activity that can support momentum but also shows divergent views on near-term risks.
• Neutral Sentiment: Reported short-interest data in the feed appears anomalous/unclear (shows zero), so it doesn’t provide a reliable contrarian signal today.
• Negative Sentiment: After-hours weakness followed the release as licensing revenue narrowly missed estimates; that headline pressure weighed on sentiment and triggered an early sell-off. Shares of Arm plunge 8% after licensing revenue misses estimates, Qualcomm outlook adds pressure
• Negative Sentiment: Industry reports warn a memory shortage is constraining smartphone production, which could depress handset-related royalties and weigh on ARM’s near-term licensing growth. Qualcomm, Arm bear brunt of memory shortage as smartphone chip sales disappoint

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.