Arm Holdings Drops 3.18% Amid AI Sector Slowdown

On September 2, 2025, Arm Holdings experienced a 3.18% drop in pre-market trading, reflecting a significant decline in investor sentiment.

Arm Holdings' stock price surged by 30% in June, driven by a broader bullish trend in the semiconductor industry. This trend also lifted peers such as Nvidia and AMD, indicating a strong market appetite for semiconductor stocks.

However, the recent softness in the AI and chip sectors suggests a cautious market sentiment regarding future growth in these areas. This cautiousness may be attributed to a potential slowdown in the AI and chip sectors, which could impact Arm Holdings' performance.

Additionally, Vident Advisory LLC increased its position in Arm Holdings by 87.5% in the first quarter, demonstrating confidence in the company's long-term prospects despite recent market volatility.