Arm (ARM) stock was down on Friday despite an update from Microsoft (MSFT) for Windows 11 computers powered by the company’s chips. This update brought with it changes and improvements to the Xbox PC app experience. The biggest change is the introduction of game downloads and local play on Arm devices.
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This update is helpful to owners of Windows 11 PCs that contain Arm processors. These are typically laptops, which often aren’t packing as much power as a desktop. With this update, these devices can now play games locally, including those available through PC Game Pass or Game Pass Ultimate subscriptions.
While this update is focused on gaming, Microsoft has been hard at work improving compatibility for Arm devices. Arm has grown as a chip manufacturer, filling a niche in the market with its extremely efficient processors. While initially more focused on mobile devices, Arm has expanded recently to power PCs with its chips. This expansion has garnered support from Microsoft as more companies seek chips with low power requirements.
Arm Stock Movement Today
Arm stock was down 0.88% on Friday despite the Windows 11 update. This could be due to the limited state of this change. It’s currently only available for Windows Insiders who are also Xbox Insiders. The rollout is staggered, with some users receiving the update sooner than others.
Even with ARM shares down today, the stock has still rallied 12.94% year-to-date and 7.87% over the past 12 months.
Is Arm Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Arm is Strong Buy, based on 19 Buy and five Hold ratings over the past three months. With that comes an average ARM stock price target of $171.05, representing a potential 22.76% upside for the shares.
