New York, January 25, 2026, 16:56 EST — Market closed
- Arm Holdings’ shares on the U.S. market ended Friday at $116.07, slipping 2.63%.
- This week’s markets face a key Federal Reserve decision alongside a packed schedule of major corporate earnings.
- Arm plans to release its quarterly earnings on Feb. 4, following market close.
Arm Holdings’ sponsored ADRs dropped 2.6% Friday, closing at $116.07. This ended a three-day rally, putting the chip-design stock back on watchlists ahead of Monday’s open.
Focus now shifts to the macro front: the Federal Reserve’s January policy meeting takes place Jan. 27-28. This session often moves rate-sensitive growth stocks.
Friday’s trading was uneven in the tech sector. Intel’s drop weighed on risk appetite, though some Nasdaq stocks managed to hold steady. One portfolio manager flagged that markets are now in a “show-me” phase for high-priced names. Reuters
Intel’s outlook weighed on chip sentiment. The company admitted it can’t keep up with soaring demand for server CPUs paired with AI accelerators and projected revenue and profit below forecasts. That shifted attention back to supply bottlenecks and cycle risks.
Arm is gearing up for its next big milestone. The company plans to release its fiscal 2026 third-quarter results on Wednesday, Feb. 4, after the market closes, followed by a webcast at 5 p.m. Eastern.
Arm doesn’t manufacture chips itself. Instead, it licenses out its processor designs and tech, earning up-front fees plus “royalties” based on how many chips customers produce using its blueprints. Earlier this month, it set up a new Physical AI division targeting robotics and automotive sectors. Drew Henry, who leads the unit, said their work has the potential to “fundamentally enhance labor.” Reuters
Despite slipping on Friday, the stock has rebounded, climbing roughly 9.7% over the last week. This follows a steep fall late last year that sparked debate over how much growth is already factored into the price.
Not everyone sees a clear path ahead. Earlier this month, BofA Securities downgraded Arm, highlighting concerns over slowing revenue growth, challenges from weaker smartphone sales, and rising memory costs. The firm also pointed to Arm’s increasing dependence on SoftBank as a key customer.
Some analysts took a different angle. On Jan. 21, Susquehanna raised Arm to Positive, maintaining a $150 price target. They highlighted fresh initiatives and an improved mix favoring higher-royalty products, despite challenges in mobile and PC sectors.
Bulls face a risk if next month’s update reveals guidance issues: even a slight sign that licensing deals are slowing or that royalty growth is leveling off could rattle a stock priced for high expectations. A hawkish Fed shift would only add pressure.
Traders are zeroing in on the Fed’s January 28 decision and press conference this week, with eyes already on Arm’s earnings report due after the close on February 4.
