Arm's Trading Volume Slides 48.6% to 263rd Market Rank as Stock Trails Nasdaq in AI-Driven Sector

On September 3, 2025, Arm recorded a trading volume of $0.40 billion, a 48.61% decrease from the previous day, ranking it 263rd in market activity. Arm Holdings (ARM) fell 0.70%.

Arm’s stock drew attention amid ongoing optimism around artificial intelligence, a sector where the chipmaker’s energy-efficient designs underpin much of the current infrastructure boom. However, shares have gained only 8% year-to-date, lagging the Nasdaq 100’s 11% rise. Analysts attribute this to weaker guidance, concerns over slower AI ROI, and speculation about Arm potentially building finished chips, which could compete with its own customers. Broader risks, including trade tensions and potential tariffs, also weigh on the smartphone segment, a key revenue driver.

Despite these challenges, analysts remain cautiously optimistic about Arm’s long-term outlook. The company’s new Compute Subsystem (CSS) architecture is highlighted as a potential catalyst for higher royalties and faster customer development cycles. However, near-term risks include rising operating expenses, operational strain from deeper chip production involvement, and weaker royalty growth in the smartphone business. Recent management guidance further signals a subdued performance in the coming quarters.

Market participants are closely watching Arm’s strategic moves, including its recent licensing updates that allow vendors to produce Arm-based laptop SoCs. These developments could expand its ecosystem but may also introduce new competitive dynamics. The company’s positioning in AI and data centers remains a focal point, though execution risks and macroeconomic headwinds continue to temper investor enthusiasm.

Backtested results indicate that Arm’s stock has historically underperformed broader semiconductor indices during periods of heightened AI hype, despite its foundational role in the sector. This aligns with its current trajectory, where structural growth is offset by execution and market risks.