What's Going On With Arm Holdings Stock?

Apr 19, 202420:02 UTC

ARM

ASML

TSM

NVDA

Arm Holdings Plc ARM shares are falling Friday after Exane BNP Paribas downgraded the stock from Outperform to Neutral.

The Details:

Exane BNP Paribas analyst David O’Connor downgraded Arm from Outperform to Neutral and announced a $100 price target on the stock.

Arm shares are down nearly 30% over the past five days as earnings from ASML Holdings N.V. ASML and Taiwan Semiconductor Manufacturing Company Ltd. TSM have put pressure on the semiconductor sector.

ASML posted worse-than-expected first-quarter results, and TSMC reduced its outlook for the chip market as it sees consumer weakness persisting which overshadowed the company's Q1 results.

Shares of semiconductor companies are falling as investors consider the latest data and the possibility of reduced revenues as the first-quarter earnings season gets underway. Nvidia Corporation NVDA shares are down approximately 10%, and Super Micro Computer, Inc. SMCI shares have fallen more than 23% Friday afternoon.

SMCI announced its third-quarter earnings date, but did not provide preliminary estimates as it has in previous quarters. Investors may be speculating the company's earnings could be less than stellar due to the absence of preliminary estimates.

Investors can gain exposure to Arm by purchasing shares of the First Trust Nasdaq BuyWrite Income ETF FTQI or the iShares Robotics and Artificial Intelligence Multisector ETF IRBO both of which count Arm among their holdings.