ARM Stock Summary and Trading Ideas (Arm Holdings PLC - American Depositary Shares | NASDAQ:ARM)

Arm Holdings is the IP owner and developer of the ARM architecture (ARM stands for Acorn RISC Machine), which is used in 99% of the world's smartphone CPU cores, and it also has high market share in other battery-powered devices like wearables, tablets, or sensors. Arm licenses its architecture for a fee, offering different types of licenses depending on the flexibility the customer needs. Customers like Apple or Qualcomm buy architectural licenses, which allows them to modify the architecture and add or delete instructions to tailor the chips to their specific needs. Other clients directly buy off-the-shelf designs from Arm. Off-the-shelf and architectural customers pay a royalty fee per chip shipped.

Arm Holdings PLC - American Depositary Shares trades on the NASDAQ stock market under the symbol ARM.

As of January 29, 2025, ARM stock price declined to $147.60 with 2,417,158 million shares trading.

ARM has a beta of 4.17, meaning it tends to be more sensitive to market movements. ARM has a correlation of 0.37 to the broad based SPY ETF.

ARM has a market cap of $155.13 billion. This is considered a Large Cap stock.

Last quarter Arm Holdings PLC - American Depositary Shares reported $844 million in Revenue and $.30 earnings per share. This beat revenue expectation by $36 million and exceeded earnings estimates by $.04.

The top ETF exchange traded funds that ARM belongs to (by Net Assets): QQQ, QTEC, SOXX, QQQM, SOXL.

ARM has outperformed the market in the last year with a price return of +107.4% while the SPY ETF gained +24.9%. However, in the short term, ARM had mixed performance relative to the market. It has underperformed in the last 3 months, returning -1.6% vs +4.0% return in SPY. But in the last 2 weeks, ARM shares have fared better than the market returning +5.4% compared to SPY +3.4%.

ARM support price is $142.60 and resistance is $156.34 (based on 1 day standard deviation move). This means that using the most recent 20 day stock volatility and applying a one standard deviation move around the stock's closing price, stastically there is a 67% probability that ARM shares will trade within this expected range on the day.