Arm

ARM

Market cap $304B

Arm Holdings shares fell more than 6% on Tuesday after HSBC downgraded the chip designer to Hold, saying foundry capacity constraints are likely to limit earnings upside despite the company's strong long-term growth prospects. The brokerage still raised its price target to $315 from $255.

Arm Holdings (NASDAQ:ARM) experienced a significant Power Inflow alert, a key bullish indicator that is closely tracked by traders who value order flow analytics, specifically institutional and retail order flow data.

Chip stocks sold off on Monday despite an upbeat report from Taiwan Semiconductor Manufacturing. Arm and other stocks broke support.

The AI data center buildout is minting a second tier of winners that most retail investors still haven't priced in.

I rate Arm Holdings (ARM) a Buy with a $544 price target, implying 64% upside from $332 per share. The main growth drivers are higher royalty dollars per chip from Armv9 and CSS, stronger licensing momentum, more CPU cores needed for agentic AI and the Arm AGI CPU. My valuation is based on a longer-dated EPS framework because management has provided visibility into 2031.I estimate $3.01 in 2028 non-GAAP EPS, grow that to $8.59 by 2031.

Arm Holdings is benefiting from the AI boom's pivot to CPUs. The company has designed its own computer chip, which it believes can help revenue boom over the next few years.

While AI infrastructure stocks have generally outperformed hyperscalers, it is the hyperscalers that ultimately have more ways to win. AI infrastructure stocks look well positioned if heavy spending on AI infrastructure continues.

ARM's licensing revenues jump 29% in fiscal Q4, driving 20% overall revenue growth as demand for AI infrastructure, custom silicon and next-generation chip designs remains robust.

CAMBRIDGE, England--(BUSINESS WIRE)--Arm Holdings plc (NASDAQ: ARM) will report financial results for the first quarter of fiscal year 2027 on Wednesday, July 29, 2026, after market close. The company will host a conference call via audio webcast at 14:00 Pacific Time (17:00 Eastern Time / 22:00 British Summer Time) to review its financial results and business outlook. The live audio webcast will be available at: https://edge.media-server.com/mmc/p/odrefapr and a replay of the conference call c.

Semis put in a powerful performance in Q2 2026 thanks to things going its way, which more than made up for what happened in Q1 2026. It is not the only thing that matters, but if semis are to add to gains in H2 2026, AI will need to keep driving growth forward. The AI thesis remains intact, but recent developments leave open the possibility the thesis could still turn out to be flawed.