ARM (NASDAQ:ARM) Shares Gap Down – Here’s What Happened

16 Sep 2026, 06:01 by Amy Steele · The Cerbat Gem

Shares of Arm Holdings PLC Sponsored ADR (NASDAQ:ARM – Get Free Report) gapped down prior to trading on Monday . The stock had previously closed at $264.79, but opened at $242.38. ARM shares last traded at $247.5720, with a volume of 1,077,325 shares.

Trending Headlines about ARM

Here are the key news stories impacting ARM this week:

Positive Sentiment: Arm’s data-center royalty revenue is reportedly doubling as hyperscalers deploy custom Arm-based CPUs, reinforcing the company’s “picks-and-shovels” position in AI infrastructure. However, continued growth across multiple computing markets is needed to justify the premium valuation. Arm Surges as the AI Selloff Tests Its Royalty Machine
Positive Sentiment: New and expanded AI-focused offerings, including Neoverse CSS N4 and an AI general-purpose CPU, could increase Arm’s presence in data centers and other compute markets. Arm expands AI chip push with Neoverse CSS N4 and AGI CPU
Positive Sentiment: Articles highlight potential expansion into physical AI, robotics and desktop computing, which could diversify Arm beyond its established smartphone and embedded markets. Arm to discuss scaling physical AI at RoboBusiness
Neutral Sentiment: Arm’s latest quarterly results exceeded expectations: revenue rose 22% year over year to $1.29 billion and earnings per share reached $0.45 versus a $0.40 consensus estimate. The results support the growth story, but investors remain focused on whether it can sustain that pace. Arm Stock Is Down More Than 40%. Here’s Why I’m Staying on the Sidelines.
Negative Sentiment: Valuation remains the key risk. A roughly 120-times forward earnings multiple leaves little room for execution problems, while Arm’s share price has shown extreme volatility. Prediction: Arm Could Be the Picks-and-Shovels Winner of the AI Boom
Negative Sentiment: A broad AI and semiconductor selloff recently pressured ARM and other high-multiple technology stocks. Smartphone processors still generated about 43% of Arm’s royalty revenue in fiscal 2026, underscoring concentration risk while newer markets scale. Arm stock falls 7% as AI selloff, valuation risks hit chip designer

Wall Street Analyst Weigh In

Several equities research analysts recently issued reports on the stock. Morgan Stanley raised their target price on shares of ARM from $202.00 to $212.00 and gave the stock an “equal weight” rating in a report on Thursday, July 30th. Susquehanna boosted their target price on shares of ARM from $300.00 to $320.00 and gave the company a “positive” rating in a research note on Tuesday, July 21st. Rosenblatt Securities lowered their price target on ARM from $270.00 to $250.00 and set a “buy” rating on the stock in a report on Friday, July 31st. New Street Research upgraded ARM from a “neutral” rating to a “buy” rating and set a $260.00 price target on the stock in a research note on Thursday, July 30th. Finally, Mizuho lifted their price objective on ARM from $425.00 to $500.00 and gave the stock an “outperform” rating in a report on Monday, June 8th. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, ARM currently has a consensus rating of “Moderate Buy” and a consensus price target of $305.72.

Read Our Latest Analysis on ARM

ARM Price Performance

The firm’s 50-day moving average is $263.00 and its 200-day moving average is $245.16. The company has a market capitalization of $258.29 billion, a P/E ratio of 249.31, a price-to-earnings-growth ratio of 7.09 and a beta of 3.89.

ARM (NASDAQ:ARM – Get Free Report) last released its quarterly earnings results on Thursday, July 30th. The company reported $0.45 earnings per share for the quarter, topping the consensus estimate of $0.40 by $0.05. The business had revenue of $1.29 billion for the quarter, compared to the consensus estimate of $1.26 billion. ARM had a net margin of 20.25% and a return on equity of 12.24%. The company’s quarterly revenue was up 22.4% on a year-over-year basis. During the same period last year, the firm earned $0.35 earnings per share. As a group, analysts forecast that Arm Holdings PLC Sponsored ADR will post 1.15 EPS for the current fiscal year.

Insider Buying and Selling

In related news, CFO Jason Child sold 10,400 shares of the firm’s stock in a transaction on Thursday, August 27th. The stock was sold at an average price of $255.33, for a total value of $2,655,432.00. Following the transaction, the chief financial officer directly owned 163,832 shares of the company’s stock, valued at approximately $41,831,224.56. This trade represents a 5.97% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Institutional Trading of ARM

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Hyperion Asset Management Ltd lifted its position in shares of ARM by 28.0% during the 4th quarter. Hyperion Asset Management Ltd now owns 1,836,185 shares of the company’s stock valued at $200,713,000 after buying an additional 401,594 shares in the last quarter. Capital Research Global Investors raised its stake in ARM by 5.1% during the 4th quarter. Capital Research Global Investors now owns 1,805,110 shares of the company’s stock worth $197,332,000 after acquiring an additional 86,978 shares during the period. Franklin Resources Inc. lifted its holdings in ARM by 0.7% during the fourth quarter. Franklin Resources Inc. now owns 1,461,410 shares of the company’s stock valued at $159,747,000 after purchasing an additional 10,385 shares in the last quarter. Employees Provident Fund Board bought a new position in shares of ARM in the fourth quarter worth approximately $120,241,000. Finally, SG Americas Securities LLC increased its stake in shares of ARM by 265.6% in the first quarter. SG Americas Securities LLC now owns 971,067 shares of the company’s stock worth $146,903,000 after purchasing an additional 705,459 shares in the last quarter. Hedge funds and other institutional investors own 7.53% of the company’s stock.

About ARM

(Get Free Report)

Arm Holdings plc is a semiconductor and software intellectual property company headquartered in Cambridge, England. Rather than manufacturing chips, Arm develops processor architectures and technology designs that it licenses to semiconductor companies, device manufacturers and other technology businesses for use in their own products.

Arm’s portfolio includes central processing unit (CPU) architectures and processor cores, graphics processing units (GPUs), systems IP, interconnect technology, security solutions and related software and development tools.