ARM Holdings PLC ADR ( (ARM) ) has risen by 9.73%. Read on to learn why.
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ARM Holdings PLC ADR shares climbed 9.73% over the past week as sentiment began to shift in favor of the chip designer after a period of underperformance. The move came despite a still-cautious technical backdrop and negative insider sentiment, with recent filings showing more executives selling than buying. Investors instead focused on the company’s strong fundamentals, including the latest quarterly results that showed revenue jumping to $1.14 billion and net profit more than doubling to $238 million from $107 million a year earlier.
A flurry of analyst activity helped power the rebound. Morgan Stanley’s Lee Simpson reiterated a Buy rating on ARM Holdings PLC ADR with a $135 price target, while Susquehanna upgraded the stock to Positive from Neutral and affirmed a more bullish $150 target. Analysts argued that the recent pullback, driven by worries over higher memory prices and broader sector downgrades, had gone too far and created an “excellent setup” for buyers willing to look beyond short‑term headwinds.
Options trading also pointed to a turn in sentiment. ARM’s shares recently jumped nearly 5% in a single session, with options volume more than doubling the daily average and call buying clearly outpacing put activity, a pattern often seen as modestly bullish. While volatility remains elevated and some market signals still flag caution, the combination of accelerating earnings, renewed analyst support and growing optimism around ARM’s AI‑focused XPU ASIC and custom server CPU projects has given the stock fresh momentum over the last week.