Arm Slides 055 as 185th Volume Stock Amid AI Expansion and Wells Fargo Price Target Hike

Arm Holdings (ARM) fell 0.55% on July 29, 2025, with a trading volume of $0.58 billion, ranking 185th among stocks on the day. The chip designer is set to report Q1 2026 earnings after market close, with analysts anticipating it will meet Wall Street expectations despite business challenges. Recent partnership with Cerence Inc. has highlighted its AI expansion in the automotive sector, while Wells Fargo raised its price target to $175, citing growing AI opportunities. Analysts remain divided on valuation sustainability amid a 30% year-to-date rally in its shares.

Investor sentiment remains cautious as Arm navigates a mixed landscape of AI-driven demand and stretched valuations. A recent price target upgrade from Wells Fargo underscores confidence in its royalty revenue potential, though earnings forecasts suggest flat performance despite 11% revenue growth projections. Market participants are closely watching the Federal Reserve’s rate decision this week, which could influence broader tech stock dynamics, including Arm’s position in the Nasdaq 100 index. Competitor earnings from Microsoft and Meta also weigh on the sector backdrop.

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