NEW YORK, July 16, 2026, 3:29 p.m. EDT
Arm Holdings NASDAQ:ARM fell 7.5% to $256.13 in late Thursday trading. The drop erased about $21.9 billion from its market value.
The loss was large relative to Arm’s revenue base. It equaled 4.4 times the company’s entire fiscal 2026 revenue.
Arm traded near 301 times last fiscal year’s GAAP earnings. Nvidia NASDAQ:NVDA stood at 31.5 times trailing earnings. Qualcomm NASDAQ:QCOM traded at 18.3 times.
| Company | Thursday move | Approximate P/E | Market value |
|---|---|---|---|
| Arm Holdings NASDAQ:ARM | -7.5% | 301x | $268.5 billion |
| Nvidia NASDAQ:NVDA | -2.7% | 31.5x | $5.04 trillion |
| Qualcomm NASDAQ:QCOM | -4.0% | 18.3x | $183.2 billion |
Arm’s multiple uses fiscal 2026 GAAP EPS. Peer figures use reported trailing earnings.
The valuation gap helps explain the sharper move. The PHLX Semiconductor Index fell 4.8%, against a 1.2% Nasdaq decline.
The selloff persisted despite Taiwan Semiconductor Manufacturing NYSE:TSM posting 77% quarterly profit growth. Its U.S. shares still fell 3.5%.
“Let’s start doing math here,” Paul Nolte of Murphy & Sylvest told Reuters. He said chip demand will eventually be met, reviving cycle concerns. Reuters
Arm also entered Thursday under company-specific pressure. Frank Lee of HSBC Holdings NYSE:HSBC cut the stock to Hold on Tuesday. He set a $315 target.
The next test arrives July 29. Arm guided fiscal first-quarter revenue to $1.26 billion, plus or minus $50 million. Non-GAAP earnings were guided to 40 cents, plus or minus four cents.
Supply will matter. Arm has disclosed more than $2 billion of AGI CPU demand through fiscal 2028. It had capacity for only the first $1 billion. CEO Rene Haas said teams were “working round the clock” to secure more.
Risks: A firm supply update or a strong quarter could reverse the selloff. Continued smartphone softness or capacity limits could deepen it.
At Thursday’s price, Arm still carried about 55 times annual sales. The July 29 report must defend that premium.
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