Key Takeaways
- Arm stock has gained 123% since early January to close at $255 on October 13, but it sits 28% below its June 30 close of $355.
- On the July 29 earnings call, CEO Rene Haas said demand for the Arm AGI CPU now exceeds $2B. Arm launched the chip on March 24.
- On October 13, a jury found Arm breached a Qualcomm license and awarded $2 in damages.
- Ratings stand at 21 Buys, 8 Outperforms, 12 Holds, 1 Underperform, and 1 Sell, and the $291 mean target sits ~14% above the price.
Arm Stock Is Up 123% Since January but 28% Below Its June Close
Arm Holdings (ARM) stock has gained 123% since early January, closing at $255 on October 13. On March 24, Arm introduced its first silicon product, a data center chip called the Arm AGI CPU developed with lead partner Meta, and the stock closed that month at $151. From there, Arm stock climbed above $400 in June and ended the month at $355.
Arm reported its fiscal first quarter on July 29. Revenue rose 22% to $1.29 billion, and royalty revenue rose 22% to $715 million. CEO Rene Haas gave a demand figure for the new chip on the Q1 earnings call: “Demand now exceeds $2 billion as we continue to add new customers, including multiple customers in the U.S. and China.” On the same call, CFO Jason Child gave his estimate for royalty growth this year: probably closer to the high teens than the roughly 20% Arm had expected.
The last four weeks of the chart included a sharp rally and a trial:
- On September 21, Arm stock rose nearly 15% during trading, the biggest gain in the Philadelphia Semiconductor index that day. AMD’s market value topped $1 trillion for the first time the same day.
- Qualcomm’s lawsuit against Arm went to trial in Delaware on October 5. Qualcomm is seeking to stop paying Arm royalties for up to five years, and those royalties are potentially worth billions of dollars.
- On October 13, a jury found that Arm breached its obligation to provide software patches and tools and intentionally and negligently interfered with Qualcomm’s relations with Meta. The jury awarded nominal damages of $2 and found for Arm on five other breach allegations.
- US District Judge Maryellen Noreika still has to rule on whether the breach lets Qualcomm stop paying royalties for five years. Arm has argued that clause is unenforceable.
Over the full chart, Arm stock rose from about $115 on January 2 to $255 on October 13. Along the way came the March chip launch and a June peak above $400. The stock then fell 12%, from $290 on September 30 to $255, over the stretch that included the Qualcomm trial and verdict. Arm reports its fiscal second quarter on November 4. Its guidance calls for $1.38 billion in revenue, plus or minus $50 million.
A Delaware jury found Arm breached a Qualcomm license agreement, and a judge has yet to rule on a five-year royalty clause. Track ARM’s royalty revenue on TIKR for free →
Arm Stock Trades Below Its $291 Mean Street Target
Arm stock has 21 Buy, 8 Outperform, 12 Hold, 1 Underperform, and 1 Sell ratings. Buys are up from 16 and Sells are down from 4 since the end of 2025. Over that stretch, the mean price target rose 76% from $165 to $291, while the share price climbed 134% from $109 to $255. The mean now sits 14% above the October 13 close. On June 30, it sat 19% below the $355 close. The highest of 40 price targets is $500, 96% above the price.
Analysts’ $291 mean target is 14% above Arm’s October 13 close, and the top call is $500. Set your own ARM price target on TIKR for free →
So what is Arm stock actually worth?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any of the stocks mentioned. Thank you for reading, and happy investing!
