Arm Holdings Faces Earnings Day Amid Mixed Valuation Sentiment

New York, NY — Arm Holdings (ARM) fell 0.55% on July 29, 2025, ending the day at a trading volume of $0.58 billion. The chip designer is scheduled to report its Q1 2026 earnings after the market closes, with analysts expecting it to meet Wall Street’s forecasts despite facing business challenges.

The company’s recent partnership has underscored its expansion into artificial intelligence (AI) within the automotive sector. Analysts at Wells Fargo have raised their price target for Arm to $175, citing the growing opportunities in AI. However, there is division among analysts regarding the sustainability of Arm’s valuations following a 30% rally in its shares this year.

Investor sentiment remains cautious as Arm navigates a complex environment marked by AI demand and high valuations. The recent price target upgrade from Wells Fargo reflects confidence in its royalty revenue potential, even as earnings forecasts predict flat performance despite projected revenue growth of 11%.

Market participants are closely monitoring the Federal Reserve’s upcoming rate decision, which could affect broader tech stock dynamics, including Arm’s position in the Nasdaq 100 index. Earnings reports from competitors are also impacting the sector’s overall outlook.

A strategy that involves buying the top 500 stocks by daily trading volume and holding them for a day has yielded impressive results, showing a 166.71% return since 2022, significantly outperforming the benchmark’s 29.18% gain.