Arm Holdings plc (NASDAQ:ARM) stock climbed about 5% on Monday as investors returned to artificial intelligence and semiconductor stocks. The broader market also traded higher. The Nasdaq gained 1.41%, while the S&P 500 rose 0.66%.

Arm Technical Analysis

Arm remains in a strong long-term uptrend. The stock has gained 121.38% over the past year. It continues to trade well above its 50-day simple moving average of $301.29, its 100-day SMA of $219.59 and its 200-day SMA of $178.03. The golden cross formed in April also remains intact, supporting the longer-term bullish trend.

In the short term, the stock is still recovering from its June pullback. Shares trade about 9.7% below the 20-day SMA of $360.16, showing that recent momentum has cooled.

The relative strength index stands at 46.83, a neutral reading that suggests the stock is neither overbought nor oversold. A key support level sits near $298.50, close to the 50-day SMA, where buyers previously stepped in.

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Earnings And Analyst Outlook

The company’s next earnings report is expected on July 29.

Wall Street expects earnings of 36 cents per share, up from 35 cents a year earlier. Revenue is projected to reach $1.27 billion, compared with $1.05 billion last year.

Arm trades at a price-to-earnings ratio of 370.9, reflecting a premium valuation.

Analysts maintain an overall Buy rating. The average analyst price forecast is $274.90. Recent analyst actions include:

  • TD Cowen reiterated Buy and raised its price forecast to $475 on June 24.
  • UBS reiterated Buy and raised its price forecast to $470 on June 24.
  • Bank of America Securities maintained Neutral and raised its price forecast to $460 on June 23.

Arm Benzinga Edge Rankings

Benzinga Edge gives the stock a Momentum score of 97.81, reflecting the stock’s strong long-term trend.

Its Value score is 1.46, indicating the shares remain expensive relative to many peers.

ETF Exposure

Arm is a significant holding in several exchange-traded funds, including:

  • REX AI Equity Premium Income ETF (NASDAQ:AIPI) with a 5.11% weighting.
  • First Trust International Equity Opportunities ETF (NASDAQ:FPXI) with a 3.40% weighting.
  • VanEck Fabless Semiconductor ETF (NASDAQ:SMHX) with a 5.92% weighting.

Large inflows or outflows in these funds can create additional buying or selling pressure for Arm shares.

Arm Price Action

ARM Price Action: Arm Holdings shares were up 4.98% at $330.97 at the time of publication on Monday, according to Benzinga Pro data.

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