Arm Holdings plc (NASDAQ:ARM) is trading higher by 5.05% on Wednesday as chip stocks catch a bid, with Technology (XLK) up 0.33%, and investors digest fresh U.S.-China headlines that keep the AI and semiconductor supply chain in focus, including those around export controls and market access.

Arm’s China Exposure Draws Investor Attention

China contributed 17% of Arm's fiscal 2025 revenue, down from 21% in fiscal 2024 and 24% in fiscal 2023, according to the company's latest annual filing, highlighting the company's gradual reduction in exposure to the Chinese market.

AI Policy Headlines Lift Chip Stocks

Sentiment across the chip sector strengthened after Jensen Huang, chief executive of NVIDIA Corporation (NASDAQ:NVDA), joined President Donald Trump's China delegation following a direct invitation from Trump. Huang reportedly traveled to Alaska to board Air Force One ahead of meetings in Beijing.

The developments come as NVIDIA continues to face tighter U.S. restrictions on advanced AI chip exports to China. Former Commerce Secretary Carlos Gutierrez also said the U.S. remains far from reaching an agreement with China on AI semiconductor export controls.

Analysts Stay Bullish On Arm

Wall Street remains broadly positive on Arm. The stock currently carries a consensus Buy rating, with an average analyst price forecast of $217.21 across 45 analysts. Forecasts range from $120 to $326. Recent analyst actions include:

  • Barclays: Overweight (Raises Forecast to $250.00) (May 8)
  • TD Cowen: Buy (Raises Forecast to $265.00) (May 7)
  • RBC Capital: Outperform (Raises Forecast to $260.00) (May 7)

Arm Price Action

ARM Price Action: ARM Holdings shares were up 5.05% at $218.43 at the time of publication on Wednesday, according to Benzinga Pro data.

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