Arm Holdings Rises 3.4% Amid UBS Rating Cut

On May 1, 2025, Arm Holdings rose 3.4% in pre-market trading.

Arm Holdings, the owner and developer of the ARM architecture, has seen its stock price influenced by recent market dynamics. The company's architecture is widely used in 99% of smartphone CPUs and holds a significant market share in other battery-powered devices such as wearables, tablets, and sensors. Arm's licensing model allows clients like Apple and Qualcomm to customize the architecture, while other clients can purchase ready-made designs. The company charges royalties for each chip shipped.

In a recent development, UBS adjusted its rating for Arm Holdings from a buy to a hold, while lowering the target price from $215.00 to $165.00. This adjustment reflects the market's cautious outlook on the semiconductor industry, which has faced challenges in recent months. Despite this, Arm Holdings continues to be a key player in the industry, with its architecture being used in a wide range of devices from smartphones to data centers.