If you’re eyeing the semiconductor space, Arm Holdings plc (ARM) is a name that undoubtedly comes up. As a significant player with a market capitalization of $143.83 billion, ARM’s influence on the technology sector is undeniable. But as an investor, you might be asking: is the current stock price truly reflective of its value? Is Arm Holdings plc a smart move for your portfolio right now, especially with the market’s current dynamics?
Let’s cut through the noise and analyze ARM’s performance, fundamentals, and future prospects. We’re here to give you a clear, actionable perspective, whether you’re a long-term holder or chasing short-term gains.
ARM Stock at a Glance: Key Metrics & Analyst Consensus
As of early December 2025, Arm Holdings plc is trading at $135.56. The market has been a bit challenging for this stock recently, with the stock exhibiting a bearish trend, sitting below both its 50-day and 200-day moving averages. This suggests some recent downward pressure on the price.
However, the outlook from analysts remains largely positive. The consensus 1-year price target stands at $167.97, indicating a potential upside of approximately +23.9%. This optimism is tempered by the stock’s annualized volatility of 32.4%, signaling that it can experience substantial price swings.
Fundamentally, Arm Holdings plc presents a mixed picture. The company has demonstrated robust revenue growth, up an impressive 34.50% year-over-year. Yet, a high debt-to-equity ratio of 5.79x raises some flags, suggesting a leveraged balance sheet that warrants careful monitoring.
Here’s a quick summary of what we’re seeing:
| Metric | Value | Insight |
|---|---|---|
| Current Price | $135.56 | Live Market Price |
| 1-Month Forecast | $145.18 | 📈 +7.1% Potential Upside |
| 1-Year Forecast | $173.07 | 📈 +27.7% Potential Upside |
| Analyst Mean Target | $167.97 | 📈 +23.9% Potential Upside |
| Trend | 📉 ▼ Bearish | Price < SMA 50/200 |
| RSI (14-day) | 40.3 | Neutral ⚖️ |
| MACD | 0.46 | 📈 Bullish Short-Term Trend |
| Above SMA 50 | ❌ $155.02 | Currently Below |
| Above SMA 200 | ❌ $146.61 | Currently Below |
| 52-Week Range | $80.00 – $183.16 | Significant Fluctuation |
| Volatility (30d Ann.) | 32.4% | 🌪️ Moderate Volatility |
| Beta (vs. Market) | 4.13x | 🎢 High Sensitivity |
| Green Days (30d) | 10/30 (33%) | 🔴 Less than half positive days |
| Institutional Ownership | 94.56% | 🏛️ High Institutional Backing |
| Short % of Float | 9.61% | 😰 Notable Bearish Bets |
Currently, ARM’s stock is trading at $135.56. Technical indicators are signaling a bearish pattern because the price is holding below both its 50-day ($155.02) and 200-day ($146.61) moving averages. This indicates that despite some recent positive momentum, the longer-term trend remains challenging.
However, it’s not all red flags. The Relative Strength Index (RSI) at 40.3 is in a neutral zone, meaning it’s neither overbought nor oversold. What’s more, the MACD indicator shows a bullish short-term trend, suggesting that while the overall trend is bearish, there could be some minor pullbacks before the stock attempts an upward move.
Looking back, ARM’s stock has traded between $80.00 and $183.16 over the past year. This wide range tells us that investor sentiment has been quite mixed, and the stock is prone to significant swings. The current price sits mid-range, which might imply that extreme fluctuations are less likely unless major news breaks. Analysts are forecasting a 1-year target of $173.07 (+27.7%) and an average consensus target of $167.97 (+23.9%). It’s also worth noting the substantial 94.56% institutional ownership, coupled with a moderate short interest of 9.61%, suggesting that a significant portion of the market believes in ARM’s long-term potential despite current bearish signals. For more detailed real-time data, you can visit the ARM page on Yahoo Finance.
Detailed ARM Price Forecast Table (2025-2026)
The following table breaks down the month-by-month forecast for ARM, showing projected price bands and potential returns against the current price of $135.56.
| Month (Period) | Min. Price | Avg. Price | Max. Price | Potential ROI vs Current ($135.56) | Model Signal |
|---|---|---|---|---|---|
| 2025-11 | $145.18 | $145.18 | $145.18 | ▲ 7.1% | Consider Buy |
| 2025-12 | $119.05 | $130.64 | $139.94 | ▼ -3.6% | Consider Short |
| 2026-01 | $121.60 | $131.51 | $145.62 | ▼ -3.0% | Consider Short |
| 2026-02 | $134.02 | $156.10 | $174.95 | ▲ 15.1% | Consider Buy |
| 2026-03 | $141.50 | $159.83 | $175.60 | ▲ 17.9% | Consider Buy |
| 2026-04 | $117.83 | $141.66 | $158.88 | ▲ 4.5% | Consider Buy |
| 2026-05 | $108.10 | $130.77 | $156.22 | ▼ -3.5% | Consider Short |
| 2026-06 | $113.56 | $148.06 | $203.82 | ▲ 9.2% | Consider Buy |
| 2026-07 | $130.45 | $183.79 | $241.69 | ▲ 35.6% | Consider Buy |
| 2026-08 | $105.17 | $178.39 | $242.07 | ▲ 31.6% | Consider Buy |
| 2026-09 | $97.88 | $163.96 | $226.98 | ▲ 20.9% | Consider Buy |
| 2026-10 | $97.83 | $173.07 | $253.91 | ▲ 27.7% | Consider Buy |
| 2026-11 | $96.77 | $180.82 | $259.02 | ▲ 33.4% | Consider Buy |
Over the forecast horizon, from November 2025 to November 2026, ARM’s price is projected by the model to fluctuate significantly, ranging from approximately $96.77 to $259.02. While some months show strong “Consider Buy” signals with substantial potential ROI, others suggest “Consider Short” due to projected declines.
What’s interesting is that the forecast uncertainty appears relatively steady. The projected price range, moving from $145.18 (in November 2025) to a wider band of $96.77 – $259.02 by November 2026, indicates consistent variability across the horizon. As always, remember that these are model-generated forecasts; they carry inherent uncertainty and can quickly shift with new market data or company developments. Future prices are never guaranteed.
Arm Holdings plc (ARM) Company Profile: Innovating the Semiconductor Industry
To truly understand an investment, you need to know the company behind the ticker. Arm Holdings plc is a powerhouse in the semiconductor industry, known for its foundational role in designing the central processing unit (CPU) products that power billions of devices worldwide.
| Attribute | Detail |
|---|---|
| Sector | Technology |
| Industry | Semiconductors |
| Market Cap | $143.83 Billion |
| Employees | 8,330 |
| Website | https://www.arm.com |
Business Overview
Arm Holdings plc isn’t just selling chips; they’re architecting the intellectual property (IP) that underpins much of the digital world. The company is deeply involved in the licensing, marketing, research, and development of microprocessors, systems IP, graphics processing units, and a host of associated technologies. This includes physical IP and related systems IP, alongside crucial software, development tools, and other services.
Their portfolio boasts ARM central processing units, accelerators, system IP products, and compute platform products, alongside comprehensive development tools and software. You’ll find Arm’s technology integrated across a vast array of markets, from automotive and computing infrastructure to consumer technologies and the rapidly expanding Internet of Things (IoT).
Founded in 1990 and headquartered in Cambridge, United Kingdom, Arm Holdings plc operates globally, with a significant presence in the United States, China, Taiwan, and the Republic of Korea. It’s a subsidiary of SoftBank Group Corp., which provides additional strategic backing.
ARM’s Valuation: Market Cap, Enterprise Value, and Multiples
Let’s talk about valuation. While Arm Holdings plc commands a substantial market cap of $143.83 billion, its enterprise value (EV) is slightly lower at $141.00 billion. This difference is actually a good sign, reflecting a strong net cash position of approximately $2.83 billion. This financial cushion provides the company with flexibility for future investments and strategic maneuvers.
When we dive into the valuation ratios, this stock tells an intriguing story. Trading at 31.96x revenue and an elevated 134.06x EBITDA, the company appears to be valued at a premium compared to many of its peers. This premium often reflects a company’s strong market position, innovative technology, and valuable brand assets. However, it also means that investors are paying for quality, and there might be less room for error if growth expectations aren’t met.
| Metric | Value |
|---|---|
| Market Cap | $143.83 Billion |
| Enterprise Value | $141.00 Billion |
| EV/Revenue (TTM) | 31.96x |
| EV/EBITDA (TTM) | 134.06x |
ARM Share Statistics: Ownership, Float, and Short Interest Insights
Understanding how a company’s shares are held and traded can offer valuable insights into its stability and market sentiment. For ARM, about 86.4% of its shares are closely held by insiders or strategic investors, leaving approximately 136 million shares available for public trading (the float). Given this float size, investors can typically trade ARM stock without causing extreme price shifts, though it’s always wise to monitor volume.
A key point here is that executives and major shareholders own a relatively small portion (0.15%) of the company. This could mean they don’t have as much “skin in the game” if the company faces significant challenges. On the flip side, the level of institutional ownership is substantial, coming in at 94.56%. This high institutional backing often provides a degree of stability and confidence in the stock, as these large entities typically conduct extensive due diligence.
Now, let’s consider short interest. With 13 million shares shorted, representing 9.61% of the float, there’s a notable level of bearish sentiment. This indicates that some investors are betting against ARM’s price. Keeping an eye on changes in short interest is crucial; a sharp increase could signal growing doubt among bearish investors, while a low short interest during positive news might limit the potential for a “short squeeze.” For the latest filings, you can often find information on the SEC Edgar database by searching for ARM.
| Metric | Value |
|---|---|
| Shares Outstanding | 1 Billion |
| Implied Shares Outstanding | 1 Billion |
| Shares Float | 136 Million |
| Insider Ownership | 0.15% |
| Institutional Ownership | 94.56% |
| Shares Short | 13 Million |
| Short Ratio (Days To Cover) | 2.80x |
| Short % of Float | 9.61% |
| Shares Short (Prior Month) | 14 Million |
| Short Date | 2025-11-14 |
Key Valuation Metrics for ARM Stock
ARM’s valuation metrics paint a picture of a company with high growth expectations. Its Trailing P/E ratio stands at a significant 171.59x, while its Forward P/E is 65.81x. These figures clearly indicate a premium valuation, suggesting that investors anticipate substantial future earnings growth. This kind of valuation requires careful consideration, as it implies little room for disappointment.
Furthermore, the Price/Sales ratio of 32.60x and Price/Book of 19.42x also show that ARM trades at elevated multiples. These metrics provide additional context, highlighting the market’s willingness to pay for ARM’s strong brand, IP, and growth prospects within the semiconductor space.
From an enterprise value perspective, the EV/Revenue ratio of 31.96x suggests a reasonable revenue-based valuation, especially given its growth trajectory. However, the EV/EBITDA multiple of 134.06x further emphasizes a potentially stretched valuation. Collectively, these metrics offer a comprehensive view of ARM’s current market positioning and how investors perceive its value relative to its earnings, sales, and assets.
| Metric | Value |
|---|---|
| Trailing P/E | 171.59x |
| Forward P/E | 65.81x |
| Price/Sales (TTM) | $32.60 |
| Price/Book (MRQ) | $19.42 |
| EV/Revenue (TTM) | 31.96x |
| EV/EBITDA (TTM) | 134.06x |
Arm Holdings plc Financial Health: Liquidity, Debt, and Cash Flow
A deep dive into ARM’s financial health reveals a company with distinct strengths and areas requiring attention. Its Return on Equity (ROE) of 12.37% and Return on Assets (ROA) of 6.05% are impressive, reflecting highly efficient use of capital—a trait often seen in fast-growing technology firms. This means ARM is adept at turning investor equity and company assets into profits.
However, the Debt/Equity ratio of 5.79x is quite high. With $429.00 million in total debt against $3.26 billion in cash, ARM has taken on a significant level of debt to fuel its operations and growth initiatives. This leverage is something investors should monitor, especially in a rising interest rate environment, as it could impact future profitability and financial flexibility.
Despite the debt, one of ARM’s most significant strengths is its ability to generate cash. The company brought in $1.58 billion in operating cash flow over the last twelve months (TTM), proving that its core business is a steady cash generator. This strong operational cash flow provides a crucial buffer and funding source.
Furthermore, ARM demonstrates a solid liquidity position. Its Current Ratio of 5.59x and Quick Ratio of 5.45x indicate that the company can comfortably cover its short-term liabilities with current assets, even excluding inventory. Moreover, ARM’s $866.75 million in levered free cash flow suggests it can still generate substantial cash for shareholders after meeting all its financial obligations and capital expenditures. This combination of strong cash generation and robust liquidity provides significant financial stability.
| Metric | Value |
|---|---|
| Return on Equity (ROE TTM) | 12.37% |
| Return on Assets (ROA TTM) | 6.05% |
| Debt/Equity (MRQ) | 5.79x |
| Total Cash (MRQ) | $3.26 Billion |
| Total Debt (MRQ) | $429.00 Million |
| Current Ratio (MRQ) | 5.59x |
| Quick Ratio (MRQ) | 5.45x |
| Operating Cash Flow (TTM) | $1.58 Billion |
| Levered Free Cash Flow (TTM) | $866.75 Million |
ARM’s Financial Efficiency: Asset Turnover & Capital Utilization
When evaluating a company’s operational prowess, financial efficiency metrics are key. Arm Holdings plc’s Asset Turnover of 0.49x suggests that it generates $0.49 in revenue for every dollar of assets it holds. This indicates a moderate level of efficiency in utilizing its assets, which could be an area for potential improvement to boost overall profitability.
Looking at receivables, the Receivables Turnover of 3.99x and Days Sales Outstanding (DSO) of 91.5 indicate that the company takes about three months to collect its payments. Slower collections might warrant attention, as efficient working capital management is crucial for cash flow. Meanwhile, a Working Capital Turnover of 1.13x points to a moderate use of short-term assets to support sales, which is further supported by a strong Current Ratio of 5.59x, signaling excellent short-term liquidity.
Crucially, Arm Holdings plc’s Return on Invested Capital (ROIC) stands at an impressive 12.14%. This metric shows how effectively the company generates returns from all the capital (debt and equity) invested in its business. A solid ROIC like this highlights ARM’s ability to create value from its investments. Overall, while ARM demonstrates good capital efficiency, enhancing asset utilization could unlock even greater profitability. Investors should compare these figures with industry peers to fully gauge its competitive standing.
| Metric | Value |
|---|---|
| Asset Turnover (TTM) | 0.49x |
| Receivables Turnover (TTM) | 3.99x |
| Working Capital Turnover (TTM) | 1.13x |
| Current Ratio (MRQ) | 5.59x |
| Days Sales Outstanding | 91.5 |
| Return on Invested Capital (ROIC TTM) | 12.14% |
ARM Profitability & Growth: Margins, Revenue, and Earnings Power
When we analyze ARM’s margin performance, it’s clear the company has strong control over its cost structure and pricing power. The gross margin, an impressive 97.39%, demonstrates exceptional efficiency in managing production costs. This means that for every dollar of revenue, a significant portion remains after covering the direct costs of goods sold.
Furthermore, ARM’s operating margin of 14.36% shows healthy profitability from its core operations before accounting for interest and taxes. An EBITDA margin of 23.84% indicates the company’s strong cash-generating capability from its operations. After all expenses, financing costs, and taxes, ARM retains approximately 18.81% as net profit for every dollar of revenue over the last twelve months.
The company is experiencing aggressive revenue growth, up 34.50% year-over-year. This rapid expansion is a significant positive, but investors should closely monitor whether this pace can be sustained without eroding those impressive profit margins.
ARM’s $1.05 billion in EBITDA and $4.30 billion in gross profit highlight its substantial raw earning power. The $830.00 million in net income further reveals how effectively this power translates into bottom-line results. It appears ARM is successfully balancing its pursuit of growth with the critical need to maintain profitability.
Despite the healthy gross margins, there’s a notable difference between the gross margin (97.39%) and the net margin (18.81%). This gap is likely due to significant operating expenses, interest costs, or taxes, which are crucial areas for investors to watch. Going forward, maintaining steady or improving margins will be essential. ARM needs to continue defending its pricing power and controlling operating costs to sustain profitability, especially if revenue growth eventually moderates.
| Metric | Value |
|---|---|
| Profit Margin (TTM) | 18.81% |
| Operating Margin (TTM) | 14.36% |
| Gross Margin (TTM) | 97.39% |
| EBITDA Margin (TTM) | 23.84% |
| Revenue (TTM) | $4.41 Billion |
| Quarterly Revenue Growth (YoY) | 34.50% |
| Gross Profit (TTM) | $4.30 Billion |
| EBITDA (TTM) | $1.05 Billion |
| Net Income (TTM) | $830.00 Million |
| Earnings Growth (YoY) | 120.00% |
ARM Stock: Dividends and Shareholder Returns Analysis
Dividend Summary & Investor Implications
Based on the available financial data, Arm Holdings plc (ARM) does not currently pay a regular dividend. This suggests that the company is prioritizing the reinvestment of its earnings back into the business. For a growth-oriented technology company like ARM, this strategy is common. It allows them to fund research and development, expand into new markets, and maintain a competitive edge, ultimately aiming for capital appreciation for shareholders rather than immediate income.
| Metric | Value |
|---|---|
| Payout Ratio | 0.00% |
| Trailing Dividend Yield | 0.00% |
For income-focused investors, the absence of a dividend means ARM might not align with their investment objectives. However, for those seeking growth in the semiconductor sector, ARM’s strategy of reinvesting profits could be seen as a positive, fueling future expansion and potentially higher stock prices down the line.
ARM Stock Technical Analysis: Trends, Momentum, and Key Levels
As of late November 2025, ARM’s current price is $135.56, and the overall trend is bearish and continues to weaken. The stock has experienced downward pressure, losing -3.39% in the last 15 days. Let’s dig into the technical indicators to determine if this signals a potential buying opportunity or a warning of further declines.
Trend Strength: ARM Remains Bearish Below Key Moving Averages
ARM is currently entrenched in a bearish trend, trading below its key moving averages. This is generally seen as a cautionary signal for investors.
What does this mean for traders? The 20-day Simple Moving Average (SMA) at $138.64 is now acting as a critical overhead resistance level. As long as ARM’s price remains below this point, the bearish trend is likely to persist. A rejection from this average could lead to a re-test of recent lows, emphasizing the downward pressure.
Momentum Check: RSI Neutral, MACD Shows Short-Term Bullishness
Let’s check the pulse of ARM’s momentum. The Relative Strength Index (RSI) is currently at 40.3, placing it in a neutral zone. This indicates a balanced momentum, meaning the stock is neither overbought nor oversold, leaving room for movement in either direction.
Interestingly, despite the broader bearish trend, the MACD histogram is positive, confirming that some upward momentum is still at play in the short term. This suggests there might be minor pullbacks, but the underlying short-term buying pressure is present.
For your trading strategy, this neutral RSI offers flexibility. Keep a close watch for a decisive MACD crossover or a clear break of a significant support or resistance level to get the next directional clue for ARM.
Bollinger Bands: ARM Stock Testing Critical Levels
The Bollinger Bands provide a good visual of price volatility and potential support/resistance. ARM stock is currently trading near the middle of its Bollinger Bands, with the 20-day SMA at $138.64. The lower band, positioned at $123.90, offers the next potential level of support if the downward pressure continues.
Volume Trends: Neutral Confirmation for ARM’s Price Action
Looking at trading volume, it’s currently near its recent average. This provides neutral confirmation for the ongoing price action, meaning there isn’t a strong surge of buying or selling conviction to validate a major move.
What’s the concern here? Rallies on low volume are often considered less sustainable and are more prone to sharp reversals. If we don’t see a significant increase in buying interest to confirm any upward movement, a pullback becomes a more likely scenario for ARM.
Support & Resistance: A Trading Plan for ARM Investors
Understanding key support and resistance levels is crucial for developing a solid trading plan. Here’s what to watch for ARM:
Resistance: The recent high of $173.54 is a key resistance level. A decisive breakout above this point, especially with strong volume, could signal a significant bullish move for ARM.
Support: The 20-day SMA at $138.64 acts as immediate support. If this level breaks, expect the price to test $123.90, which is the lower Bollinger Band.
Here’s a practical trading plan:
- ✅ If ARM holds above $138.64: The bullish trend could continue, with the next target at $173.54.
- ⚠️ If it breaks below $138.64: Expect a dip towards $123.90.
- 🛑 A drop below $123.90: This could trigger a deeper correction, potentially towards the 200-day SMA at $146.61 (note: this appears to be a typo in the original report, as the 200-day SMA should be higher than $123.90 if it’s a “deeper correction” target. I will keep the original number but note the potential inconsistency).
ARM Stock Technical Verdict: Buy, Hold, or Sell?
Based on the current technical picture, here’s a breakdown for different types of investors:
Short-Term Traders: The short-term trend shows positive momentum, but keep a close eye for signs of exhaustion. A neutral stance might be best until a clearer signal emerges from the MACD or significant volume changes.
Long-Term Investors: The long-term uptrend for ARM remains valid as long as the price holds above the 200-day SMA ($146.61). A pullback towards the 50-day SMA ($155.02) area could present a safer buying opportunity, offering a better entry point for those looking to accumulate shares.
New Buyers: Avoid chasing the rally at current levels. It’s prudent to wait for either a confirmed breakout above $173.54 with strong buying volume, or a more favorable pullback to the $138.64 area, which would offer a better risk/reward entry point.
Bottom Line: The technical indicators suggest that the recent rally in ARM stock might be losing short-term steam. While the underlying long-term trend remains bullish, a correction seems plausible before the next major upward move. Trade carefully, always waiting for clear confirmation at key support and resistance levels.
ARM Stock Historical Performance & Recent Trading Data
Let’s take a look at how Arm Holdings plc (ARM) has been performing recently. Over the last 15 trading days, from November 14, 2025, to November 28, 2025, ARM’s stock posted a return of -3.01%. This indicates some recent downward pressure. During this period, the stock traded within a range of $125.17 to $143.80, with an average daily trading volume of 4,012,127 shares.
ARM Recent Trading Data: Daily Performance Snapshot
Here’s a detailed look at ARM’s daily trading activity for the past 15 days, providing insight into its price movements and volume trends.
| Date | Open | High | Low | Close | Volume |
|---|---|---|---|---|---|
| 2025-11-28 | $133.79 | $135.66 | $132.70 | $135.56 | 1,559,100 |
| 2025-11-27 | $133.50 | $134.65 | $132.36 | $132.61 | 2,806,700 |
| 2025-11-26 | $133.50 | $134.65 | $132.36 | $132.61 | 2,806,700 |
| 2025-11-25 | $132.00 | $132.50 | $126.92 | $131.44 | 4,858,100 |
| 2025-11-24 | $132.82 | $136.01 | $132.55 | $134.71 | 3,417,600 |
| 2025-11-23 | $132.53 | $133.27 | $125.17 | $131.57 | 6,166,800 |
| 2025-11-22 | $132.53 | $133.27 | $125.17 | $131.57 | 6,166,800 |
| 2025-11-21 | $132.53 | $133.27 | $125.17 | $131.57 | 6,166,800 |
| 2025-11-20 | $142.28 | $143.32 | $131.85 | $132.53 | 4,609,700 |
| 2025-11-19 | $137.60 | $138.56 | $134.92 | $136.99 | 3,499,400 |
| 2025-11-18 | $138.18 | $139.54 | $133.24 | $136.04 | 3,993,000 |
| 2025-11-17 | $139.57 | $143.80 | $138.19 | $140.26 | 2,977,500 |
| 2025-11-16 | $136.91 | $143.74 | $135.10 | $139.77 | 3,717,900 |
| 2025-11-15 | $136.91 | $143.74 | $135.10 | $139.77 | 3,717,900 |
| 2025-11-14 | $136.91 | $143.74 | $135.10 | $139.77 | 3,717,900 |
ARM Stock Price Statistics: Volatility and Moving Averages
Understanding the broader context of ARM’s price action is crucial. Over the past year, the stock has seen a high of $183.16 and a low of $80.00. This wide range highlights significant fluctuations, likely driven by market sentiment, company-specific news, or broader sector trends.
Currently, the 50-day moving average at $153.83 is above the 200-day moving average of $138.29. This configuration, often referred to as a “golden cross,” is generally viewed as a bullish signal, indicating positive long-term momentum. However, remember our earlier observation that the current price is below both these averages, suggesting recent weakness despite the historical cross.
ARM carries a beta of 4.13x. This means the stock tends to move much more sharply than the broader market—specifically, about 313% more volatile. Coupled with a moderate 30-day annualized volatility of 32.4%, it’s clear that this stock experiences frequent and sometimes significant price swings. For investors, this implies both higher potential for gains and increased downside risk. These indicators are particularly important when deciding on position sizing or entry timing, especially for those managing a portfolio that balances stability with growth exposure. For more detailed statistics, you can refer to MarketWatch.
| Metric | Value |
|---|---|
| 52 Week High | $183.16 |
| 52 Week Low | $80.00 |
| 50 Day MA | $153.83 |
| 200 Day MA | $138.29 |
| Beta | 4.13x |
| Volatility (30d Ann.) | 32.4% |
ARM Quarterly Earnings Performance: Revenue & Net Income Insights
Examining ARM’s recent quarterly performance provides a critical look at the company’s operational execution. In its latest reported quarter (2025-Q3), ARM posted revenue of $1.14 billion and net income of $238.00 million.
The company has demonstrated strong growth trajectories. Quarter-over-quarter revenue saw an increase of +7.8%, while the year-over-year revenue growth stands at an impressive +34.5%. These figures underscore ARM’s ability to expand its top line consistently.
ARM’s Last Four Quarterly Earnings Results
Here’s a snapshot of ARM’s performance over the past four quarters, offering a trend view of its revenue, net income, EPS, and gross margin.
| Quarter | Revenue | Net Income | EPS | Gross Margin |
|---|---|---|---|---|
| 2025-Q3 | $1.14 Billion | $238.00 Million | 0.22x | 97.4% |
| 2025-Q2 | $1.05 Billion | $130.00 Million | 0.12x | 97.2% |
| 2025-Q1 | $1.24 Billion | $210.00 Million | 0.20x | 97.7% |
| 2024-Q4 | $983.00 Million | $252.00 Million | 0.24x | 97.2% |
ARM Growth Metrics: Quarter-over-Quarter & Year-over-Year
Beyond the raw numbers, the growth metrics offer a clear picture of ARM’s momentum.
| Metric | Value |
|---|---|
| QoQ Revenue Growth | +7.8% |
| QoQ Net Income Growth | +83.1% |
| YoY Revenue Growth | +34.5% |
The substantial quarter-over-quarter net income growth of +83.1% is particularly noteworthy, indicating strong operational leverage and profitability improvements in the most recent period. These growth figures reinforce ARM’s position as a dynamic player in the technology sector.
ARM Short Selling Insights: Bearish Sentiment & Short Squeeze Potential
Short selling activity can be a strong indicator of market sentiment. Currently, there is 13 million shares worth of short interest in ARM, with a short ratio (or days to cover) of 2.8x. This ratio means that at ARM’s recent average daily trading volume, it would take approximately three days for all short positions to be covered. A low days-to-cover figure suggests that short sellers do not currently hold significant control over the stock’s price, and the risk of a prolonged “short squeeze” (where shorts are forced to buy back shares, driving prices up rapidly) is relatively low.
With 9.61% of the public float sold short, a moderate percentage of the stock is being shorted. This indicates some bearish sentiment but not an extreme level that would typically trigger panic among investors. It’s interesting to note that this level has recently decreased from 14 million shares, suggesting a slight shift in bearish sentiment, perhaps as some short sellers have covered their positions.
While the current short interest isn’t alarming, investors should remain aware of potential volatility spikes. Significant short interest can make a stock more susceptible to sharp movements, particularly if positive news events force short sellers to quickly cover their positions, leading to rapid price increases.
| Metric | Value |
|---|---|
| Shares Short | 13 Million |
| Short Ratio (Days To Cover) | 2.80x |
| Short % of Float | 9.61% |
| Shares Short (Prior Month) | 14 Million |
| Short Date | 2025-11-14 |
ARM Stock Risk Analysis: Volatility, Drawdown, and VaR
Investing in any stock comes with inherent risks, and Arm Holdings plc (ARM) is no exception. Understanding these risks is crucial for making informed decisions and aligning your investments with your personal risk tolerance.
ARM’s risk profile reveals a high degree of volatility, with an annualized volatility of 62.4%. This figure signals a significant level of investment risk, meaning the stock can experience substantial price swings both up and down. Investors should be prepared for this inherent choppiness.
The Sharpe ratio, at 0.74x, suggests mixed risk-adjusted returns. While a positive Sharpe ratio is generally good, this level indicates that the returns generated by ARM might not fully compensate for the level of risk taken. Furthermore, the maximum drawdown of -53.97% highlights the potential for significant capital loss during adverse market conditions. This is the largest percentage drop from a peak to a trough within a specific period.
For a more forward-looking perspective, the Value at Risk (VaR) at a 5% confidence level shows a potential loss of -5.42%. This means that in the worst 5% of scenarios, an investor could expect to lose at least 5.42% over a given period. The VaR at a 1% confidence level, at -9.57%, indicates an even higher potential loss in the most extreme 1% of scenarios.
Finally, the Sortino ratio of 1.15x specifically focuses on downside risk, measuring returns generated per unit of negative* volatility. A higher Sortino ratio is generally preferred, indicating better risk-adjusted performance when only considering downside deviations. While positive, investors should consider all these risk metrics collectively alongside their own risk tolerance and investment objectives before making any decisions.
| Metric | Value |
|---|---|
| Volatility (Annualized) | 62.4% |
| Value at Risk (5%) | -5.42% |
| Value at Risk (1%) | -9.57% |
| Sharpe Ratio | 0.74x |
| Sortino Ratio | 1.15x |
| Maximum Drawdown | -53.97% |
| Skewness | 2.77x |
| Kurtosis | 34.21x |
ARM Sentiment Analysis: News, Analysts, and Options Market Mood
Understanding the prevailing market sentiment for a stock like ARM can provide valuable context to quantitative analysis. Our current market sentiment analysis for ARM reveals a cautiously positive outlook, reflected in a composite sentiment score of 0.24x and a confidence level of 42.4%. This positive sentiment is derived from an aggregation of various data sources, including recent news coverage, professional analyst recommendations, and activity in the options market.
Breaking down the individual components provides more nuanced insights:
- News Sentiment: Currently neutral (0.08x), suggesting that recent news headlines have not significantly skewed towards overwhelmingly positive or negative.
- Analyst Sentiment: Strongly positive (0.40x), indicating that professional analysts covering ARM generally hold a bullish view on the company’s prospects.
- Options Market Sentiment: Neutral (-0.01x), which implies that options traders are not showing a strong directional bias, with neither calls nor puts dominating significantly. The Put/Call Ratio of 0.51x further supports this neutral stance, as it’s close to 0.5, suggesting a balanced interest between bullish call options and bearish put options.
These sentiment indicators should always be considered in conjunction with a thorough fundamental and technical analysis for a comprehensive investment perspective. They offer a qualitative layer to the data, helping you gauge the market’s psychological state regarding ARM.
| Metric | Value |
|---|---|
| Composite Sentiment Score | 0.24x |
| Sentiment Classification | Positive |
| Sentiment Confidence | 42.4% |
| News Sentiment | Neutral (0.08x) |
| Analyst Sentiment | Positive (0.40x) |
| Options Sentiment | Neutral (-0.01x) |
| Put/Call Ratio | 0.51x |
Arm Holdings plc Peer Comparison: ARM vs. Industry Rivals
To truly assess Arm Holdings plc’s standing, it’s essential to compare it against its industry peers. This helps us understand where ARM excels and where it might face challenges relative to competitors.
ARM, with its colossal $143.83 billion market cap, significantly overshadows smaller rivals like AWE.L ($1.63 billion), CML.L ($51.48 million), and KMK.L ($43.17 million). This dominant size suggests a strong market presence and established position within the semiconductor ecosystem.
When it comes to valuation, ARM’s P/E ratio of 171.59x suggests that investors are pricing in extremely high future growth expectations. In stark contrast, KMK.L (P/E 6.59x) trades at much lower multiples, which often reflects more mature or slower-growth businesses. ARM’s robust revenue growth of 34.50% further highlights its strong expansion, though KMK.L boasts an even stronger 85.50% growth, showing intense competition even among smaller players.
Profitability is another key differentiator. ARM’s impressive 18.81% net margin demonstrates strong overall profitability, outperforming CML.L (5.77%) and KMK.L (14.16%). Meanwhile, AWE.L faces significant losses with a -54.65% net margin, indicating considerable operational challenges.
ARM also shows solid capital efficiency with a 12.37% Return on Equity (ROE). Its debt-to-equity ratio of 5.79x suggests a relatively strong balance sheet, especially when compared to AWE.L’s much higher leverage at 106x. CML.L (4.04x) and KMK.L (7.77x) exhibit lower debt levels. Finally, dividend policies vary significantly across these companies. CML.L (3.61%) rewards shareholders with payouts, whereas ARM, like many high-growth tech firms, reinvests all cash into growth initiatives, offering no dividend yield (0.00%). This comparison underscores ARM’s unique position of high growth, strong profitability, and market leadership, but also highlights the varied strategies and risk profiles within the industry.
| Metric | ARM | AWE.L | CML.L | KMK.L |
|---|---|---|---|---|
| Market Cap | $143.83 Billion | $1.63 Billion | $51.48 Million | $43.17 Million |
| P/E Ratio | 171.59x | 41.04x | 44.29x | 6.59x |
| Revenue Growth | 34.50% | 13.20% | -26.80% | 85.50% |
| Net Margin | 18.81% | -54.65% | 5.77% | 14.16% |
| EPS | 0.79x | -0.17x | 0.07x | 0.01x |
| ROE | 12.37% | -44.53% | 2.28% | 7.40% |
| Debt-to-Equity | 5.79x | 106x | 4.04x | 7.77x |
| Dividend Yield | 0.00% | 0.00% | 3.61% | 0.00% |
| 52-Week Range | $80.00 – $183.16 | $81.90 – $207.40 | $194.93 – $349.94 | $4.30 – $9.50 |
ARM Insider Transactions: What Recent Activity Reveals
As of our analysis, there is no insider transaction data available for Arm Holdings plc (ARM) in the past 3 months. This means we don’t have recent public records of directors, officers, or major shareholders buying or selling ARM stock.
Why might this data be unavailable? Since Arm Holdings plc is a non-US company (headquartered in the United Kingdom), it may not be subject to the same SEC filing requirements for insider transactions as US-based companies. This is a common reason for the absence of such data in public databases that primarily track US regulatory filings. Therefore, the lack of data doesn’t necessarily indicate a lack of activity, but rather a difference in reporting requirements.
Key Risk Factors for Investing in ARM Stock
Potential investors considering Arm Holdings plc should be fully aware of several key risk factors. While this list highlights critical considerations based on current data and market dynamics, it’s important to remember that it may not encompass all possible risks associated with investing in the stock.
Here are some important points to consider:
- ⚠️ Price Below Key Moving Averages: The current price of $135.56 is below both the 50-Day SMA ($155.02) and the 200-Day SMA ($146.61). This technical indicator suggests potential short-term and long-term weakness, signaling that the stock is currently in a bearish trend.
- ⚠️ High Debt-to-Equity Ratio: ARM carries a high Debt-to-Equity ratio of 5.79x. This indicates a significant level of financial leverage, which can expose the company to increased risk, especially in environments of rising interest rates or economic downturns.
- ⚠️ Market Fluctuations and Economic Conditions: As a technology company in the semiconductor sector, ARM is highly susceptible to general market fluctuations and broader economic conditions. Downturns in consumer spending, enterprise investment, or global supply chain disruptions can significantly impact demand for its products and licensing.
- ⚠️ Intense Competition: The semiconductor industry is fiercely competitive, with both established giants and agile new entrants vying for market share. ARM’s ability to maintain its leadership in IP licensing depends on continuous innovation and effective competition against rivals, which is an ongoing risk.
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ARM Analyst Insights: Consensus, Price Targets, and Upside Potential
What are the professionals saying about Arm Holdings plc (ARM)? This section summarizes the collective view of professional analysts who cover ARM, giving us a sense of Wall Street’s sentiment.
The consensus recommendation among analysts is ‘Buy’. This positive outlook is based on the opinions of 32 analysts who actively cover the stock. The mean price target set by these analysts is $167.97, with individual targets ranging from a low of $80.00 to a high of $215.00.
Based on this mean target price of $167.97, there’s an implied potential upside of approximately +23.9% from the current price of $135.56. This provides a clear gauge of how Wall Street generally perceives the stock’s potential for appreciation over the next year. While analyst ratings are valuable, always remember to combine them with your own research and risk assessment.
| Metric | Value |
|---|---|
| Recommendation | Buy |
| Mean Target Price | $167.97 |
| High Target Price | $215.00 |
| Low Target Price | $80.00 |
| Number of Analyst Opinions | 32 |
Latest News & Developments for Arm Holdings plc
Staying up-to-date with recent news and developments is crucial for any investor. Here’s a summary of recent headlines concerning Arm Holdings plc (ARM), reflecting events and analyst perspectives from the last few days of November 2025:
- Loop Capital Raises PT on Arm Holdings (ARM) stock
Publisher: Insider Monkey | Published: 2025-11-29T06:11:23Z
This indicates increasing analyst confidence in ARM’s future valuation, often driven by positive expectations for company performance or market conditions. - Arm Holdings’ Power Efficiency Sets the Stage for AI and IoT Expansion
Publisher: Zacks | Published: 2025-11-28T17:26:00Z
This article highlights it’s strategic positioning within the booming Artificial Intelligence and Internet of Things sectors, emphasizing its core strength in power-efficient chip designs as a key growth driver. - Wall Street Bullish on Arm Holdings plc (ARM) amid AI and Data Center Opportunity
Publisher: Insider Monkey | Published: 2025-11-28T06:21:25Z
Further reinforcing analyst sentiment, this news points to significant opportunities for ARM in the AI and data center markets, areas of high investment and growth within the technology sector. - Arm Holdings Tumbles 25.8% as AI Partnerships Spark Debate on Future Valuation
Publisher: Simply Wall St. | Published: 2025-11-27T05:11:40Z
This headline suggests a significant price drop, potentially due to market reactions or debates surrounding the implications of new AI partnerships on ARM’s long-term valuation model or revenue streams. It indicates a period of volatility and investor uncertainty. - Stock Market News: Alphabet inches closer to $4T, consumer spending rises in Midwest
Publisher: TheStreet | Published: 2025-11-26T05:33:25Z
While not directly about ARM, this provides broader market context. Strong consumer spending and growth in other tech giants like Alphabet can signal a generally healthy economic environment that could indirectly benefit semiconductor companies.
These news items reflect a dynamic period for ARM, with both strong bullish signals from analysts regarding AI and IoT opportunities, alongside significant price volatility linked to specific partnership discussions. Investors should monitor how these themes evolve in the coming weeks.
ARM Stock Conclusion & Investment Outlook
Let’s bring everything together to form a comprehensive outlook on Arm Holdings plc (ARM) for investors. We’ve explored its financials, technicals, and market sentiment, and here’s the distilled view.
Short-Term Technical Snapshot for ARM
- ● Overall Technical Sentiment: Neutral. While there are some short-term bullish signals, the overarching trend is bearish.
- ▼ Price Trend vs MAs: Bearish. The price is currently trading below both its 50-day ($155.02) and 200-day ($146.61) Simple Moving Averages, indicating weakness.
- ● Momentum (RSI): Neutral (40.3). The Relative Strength Index suggests balanced momentum, neither overbought nor oversold.
- 📊 Support / Resistance (30d): Approximately $125.17 (support) / $173.54 (resistance). These are critical levels to watch for near-term movements.
Longer-Term Fundamental & Forecast Outlook for ARM
- ▲ 1-Year Avg. Forecast: Potential average change of +27.7%, targeting approximately $173.07. This indicates strong upside potential from predictive models.
- ● Fundamental Health: Assessment Incomplete. While Return on Equity (ROE) is strong at 12.37%, the high Debt/Equity ratio of 5.79x necessitates caution.
- ⚠️ Valuation Snapshot: Appears Elevated. The Forward P/E of 65.81x suggests a premium valuation, pricing in significant future growth.
- 📈 Recent Growth (YoY): Positive. Revenue grew 34.50%, and earnings saw an impressive 120.00% increase year-over-year.
- ▲ Analyst Consensus: Buy. The mean target price from analysts is $167.97, signaling collective optimism.
Overall Assessment & Investment Outlook for ARM
Synthesizing all the data, ARM currently presents a picture of Neutral short-term technicals, coupled with moderate fundamentals that show both robust growth and a notable debt load. Its valuation appears elevated, suggesting that the market has high expectations for its future performance. Predictive models project a positive 1-year path, indicating a potential upside of +27.7%, with a target around $173.07.
Ultimately, the decision to invest in ARM should factor in these elements against your personal risk tolerance and investment timeline. While the growth story and analyst optimism are compelling, the current technical bearishness, high valuation, and debt levels warrant careful consideration. Diversification and a thorough understanding of the semiconductor market’s dynamics are always recommended.
Frequently Asked Questions About ARM Stock
What is the ARM stock price prediction for the next year (2025-2026)?
Based on current models, the average 1-year price forecast for ARM is approximately $173.07. This represents a potential +27.7% change from the recent price of $135.56. It’s important to remember that this is a model-driven estimate, not a guarantee, and actual prices will fluctuate based on numerous market and company-specific factors.
Will ARM stock go up or down?
The 1-year forecast model suggests that the price might show strong gains on average (+27.7% potential). However, the short-term direction is highly uncertain and is heavily influenced by prevailing market sentiment (currently ‘Neutral’), breaking news, and overall economic conditions. Technical indicators, such as the stock trading below its key moving averages, currently suggest a bearish short-term trend.
Is ARM stock a good investment right now?
Determining if ARM is a ‘good buy’ requires evaluating multiple factors. Technical sentiment is ‘Neutral’ in the short term, while the 1-year forecast suggests a +27.7% potential upside. Technically, the RSI indicates neutral conditions (RSI: 40.3), pointing to balanced momentum. Consider its premium valuation, strong revenue growth (34.50% YoY), but also its high debt-to-equity ratio (5.79x) and identified risk factors. Align these factors with your personal investment strategy and risk tolerance.
How volatile is ARM stock?
Based on recent 30-day price action, ARM’s annualized volatility is approximately 32.4%. This level is considered moderate to high, indicating the degree of recent price fluctuation. This aligns with its Beta of 4.13x, meaning it tends to move significantly more than the broader market. Higher volatility implies larger potential price swings, both upwards and downwards.
What is ARM’s P/E ratio and what does it mean?
ARM’s Trailing P/E ratio (based on past earnings) is 171.59x, which is considered relatively high. This typically implies that the market expects strong future growth or that the stock might be overvalued. The Forward P/E (based on expected earnings) is 65.81x. A P/E ratio indicates how much investors are paying per dollar of earnings. A high P/E isn’t necessarily bad if strong growth justifies it; it’s essential to compare it to industry peers and historical levels.
What does ARM’s liquidity position reveal about its financial health?
ARM’s financial health includes a strong Current Ratio of 5.59x and a Quick Ratio of 5.45x, suggesting it can comfortably cover its short-term liabilities. Furthermore, its robust operating cash flow of $1.58 billion and levered free cash flow of $866.75 million provide a significant buffer and are critical factors in its ability to fund operations, manage debt, and pursue growth initiatives.