ARM (NASDAQ:ARM) Sees Unusually-High Trading Volume After Analyst Upgrade

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM) saw unusually-high 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. Approximately 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.

Several other equities analysts have also recently issued reports on the stock. Raymond James Financial upgraded shares of ARM from a “market perform” rating to an “outperform” rating and set a $166.00 target price on the stock in a research note on Wednesday. Mizuho reduced their price target on shares of ARM from $190.00 to $160.00 and set an “outperform” rating for the company in a research note on Thursday, February 5th. HSBC raised shares of ARM from a “reduce” rating to a “buy” rating and boosted their price objective for the company from $90.00 to $205.00 in a report on Friday, March 20th. New Street Research upgraded shares of ARM from a “neutral” rating to a “buy” rating in a report on Thursday, February 5th. Finally, UBS Group cut their target price on shares of ARM from $175.00 to $170.00 and set a “buy” rating for the company in a research report on Thursday, February 5th. Eighteen 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’s stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $166.78.

Key ARM News

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Arm unveiled the AGI CPU — its first in‑house data‑center processor — and said the product targets “agentic AI” workloads with Meta as a launch customer; management also guided to multi‑billion annual sales from the new silicon effort. Reuters: Arm jumps as new AI chip to drive billions annual revenue
• Positive Sentiment: Company projections and analyst repricing: Arm suggested the new chip could generate roughly $15B in revenue by 2031 (some headlines cited even larger figures), and multiple firms raised price targets or upgraded ratings after the announcement — driving bullish sentiment. Forbes: Arm Shares Surge 18% On $15 Billion AI Chip Sales Forecast
• Positive Sentiment: Options and market momentum: heavy call buying was reported (large unusual call volume), amplifying upside pressure; macro/tech tailwinds (chip optimism, lower VIX) supported a broad tech rally that helped amplify Arm’s move. Fool: Stock Market Today — chip optimism boosts tech
• Neutral Sentiment: Official corporate release: Arm formally announced the “Arm AGI CPU” and the company’s shift from pure IP licensing into selling branded silicon — a structural business change that creates both new revenue upside and new execution responsibilities. BusinessWire: Arm expands compute platform to silicon products
• Neutral Sentiment: Market positioning vs incumbents: some coverage notes Nvidia and other incumbents aren’t necessarily threatened in the near term — Arm’s entry expands choices for hyperscalers but won’t instantly displace entrenched AI GPU/accelerator suppliers. Yahoo: Nvidia Stock Is Rising — Why Arm’s New AI Chip Is Not a Threat
• Negative Sentiment: Execution and margin risk: moving from licensing to building and selling silicon is capital‑intensive and operationally complex; some analysts and commentators flagged uncertainty around Arm’s ability to scale manufacturing, margin impacts, and competitive response from Intel/AMD. Proactive: Arm’s AI chip push lifts shares, but analysts question upside potential

Hedge Funds Weigh In On ARM

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Pacific Heights Asset Management LLC grew its stake in shares of ARM by 32.1% during the 3rd quarter. Pacific Heights Asset Management LLC now owns 185,000 shares of the company’s stock valued at $26,176,000 after acquiring an additional 45,000 shares during the period. Orion Porfolio Solutions LLC bought a new stake in ARM during the 2nd quarter worth approximately $6,277,000. Stanley Laman Group Ltd. purchased a new position in ARM during the third quarter valued at approximately $6,219,000. Voya Investment Management LLC lifted its holdings in ARM by 15.5% during the third quarter. Voya Investment Management LLC now owns 202,443 shares of the company’s stock valued at $28,644,000 after purchasing an additional 27,228 shares in the last quarter. Finally, Lansdowne Partners UK LLP bought a new position in shares of ARM in the third quarter worth approximately $8,486,000. 7.53% of the stock is currently owned by hedge funds and other institutional investors.

ARM Stock Up 16.4%

The stock has a market capitalization of $165.95 billion, a PE ratio of 209.43, a PEG ratio of 9.31 and a beta of 4.11. The stock’s 50 day moving average price is $120.72 and its 200-day moving average price is $134.17.

ARM (NASDAQ:ARM) last released its earnings results on Wednesday, February 4th. The company reported $0.43 earnings per share for the quarter, beating analysts’ consensus estimates of $0.41 by $0.02. ARM had a net margin of 17.15% and a return on equity of 14.01%. The company had revenue of $1.24 billion for the quarter, compared to analysts’ expectations of $1.23 billion. During the same quarter in the previous year, the company earned $0.39 EPS. ARM’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. On average, analysts forecast 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.