Arm Holdings Leads Nasdaq 100, Monster Beverage Lags

Arm Holdings leads the Nasdaq 100 index with a 2.9% gain, while Monster Beverage lags behind with a 1.8% drop. T-Mobile US is also down 1.7%, and NVIDIA is up 2.4%. These stocks show a year-to-date gain of 23.3% for Arm Holdings and 15.0% for Monster Beverage.

In early trading on Wednesday, Arm Holdings (NASDAQ: ARM) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 2.9%. Year to date, Arm Holdings registers a 23.3% gain [1]. Meanwhile, Monster Beverage (NASDAQ: MNST) is the worst performing Nasdaq 100 component, trading down 1.8%. Monster Beverage is showing a gain of 15.0% year to date [2].

Two other components making notable moves today are T-Mobile US (NASDAQ: TMUS), trading down 1.7%, and NVIDIA (NASDAQ: NVDA), trading up 2.4% on the day [1]. These movements underscore the varying fortunes of tech and consumer staples stocks within the Nasdaq 100 index.

Arm Holdings' strong performance can be attributed to its significant data center momentum and AI chip demand, which drove record Q4 revenue and 25–30% projected royalty growth for Q1 [2]. The company's CEO, Rene Haas, emphasized that AI is transforming every industry and that Arm is essential to powering it. The company's outlook remains positive, with projections for first-quarter revenue of $1 billion to $1.1 billion, representing 12% growth, and royalty growth accelerating to 25-30% [2].

Monster Beverage, on the other hand, faces headwinds due to a sharp rise in U.S. aluminum tariffs, which will raise production costs and weigh on margins in 2026 [3]. Redburn downgraded the stock to Neutral, citing a 26% rise in the all-in cost of U.S. aluminum in 2026 and a potential mid-single-digit COGS inflation, which could require a high-single-digit U.S. price hike to maintain current gross margins. The firm now expects Monster's gross margin to contract by about 70 basis points in 2026, compared with prior expectations for a slight expansion, and cut its 2025–2027 EPS forecasts by 2% to 5% [3].

In contrast, NVIDIA's performance is bolstered by strong demand for its Graphics Processing Units (GPUs) and its Compute and Networking segment, which includes AI processors and data center architecture [2]. The company gained over 19% and 40% during the periods, demonstrating robust growth in the AI and data center spaces.

The Nasdaq 100 index, which includes Arm, gained over 8% year to date, outperforming the broader tech sector. Analysts remain bullish on Arm, with a consensus price forecast of $151.72 and an implied upside of 16.97% [2]. Despite macroeconomic uncertainties, including potential indirect effects from U.S.-China tariffs, Arm's strong fundamentals and growth prospects continue to attract investor attention.

References:
[1] https://www.nasdaq.com/articles/nasdaq-100-movers-mnst-arm
[2] https://www.benzinga.com/markets/tech/25/07/46324642/arm-rides-ai-boom-and-outperforming-market
[3] https://ca.investing.com/news/stock-market-news/monster-beverage-hit-with-downgrade-as-aluminum-tariff-will-pressure-margins-4095351