ARM Holdings PLC ADR Slides as Wall Street Splits

ARM Holdings PLC ADR ( (ARM) ) has fallen by -8.31%. Read on to learn why.

ARM Holdings PLC ADR shares fell 8.31% over the past week as sentiment swung sharply following a wave of mixed analyst calls. The drop came despite Bank of America and several other firms maintaining Buy ratings, with BofA trimming its price target to $145 from $205. Supportive analysts still see strong long‑term growth potential tied to wider adoption of Arm’s latest v9 architecture and CSS designs in smartphones and data centers, as well as rising computing demand globally.

The near‑term pressure has been driven mainly by high‑profile downgrades. Goldman Sachs cut ARM to Sell from Neutral and slashed its target price to $120 from $160, while Mizuho also shifted to a Sell stance. These bearish calls argue that ARM has less direct leverage to the current AI investment boom than some peers, is facing a challenging transition in its business model, and has yet to gain meaningful traction in “non‑traditional” markets outside its core strongholds. Analysts also flagged limited visibility into ARM’s push up the silicon value chain and concerns about the broader semiconductor outlook into 2026.

Adding to the cautious tone, insider activity has turned negative, with more company insiders selling shares in recent months. At the same time, ARM’s valuation now rests on ambitious growth expectations, including increasing contributions from majority owner SoftBank and the success of new CPU chipset and silicon initiatives. While some analysts, such as those at William Blair and Barclays, still see ARM well positioned for long‑term earnings growth, the combination of downgrades, target cuts, a Sell technical signal, and insider selling has been enough to push the stock lower this week despite a modest positive performance year to date.