Arm Holdings plc (NASDAQ:ARM) shares are trading lower on Thursday as traders weigh the latest AI and export-control headlines and their potential impact on chip demand and global supply chains.



The pullback follows a recent semiconductor rally fueled by U.S.-China developments.



The latest policy news has kept AI and chip supply chains in the spotlight, including renewed attention to export controls and market access following Jensen Huang‘s attendance at President Donald Trump's China delegation meetings in Beijing. Separately, Arm's latest annual filing showed China accounted for 17% of fiscal 2025 revenue, down from 21% in fiscal 2024 and 24% in fiscal 2023.



The move comes amid mixed broader markets, with the Invesco QQQ Trust, Series 1 (NASDAQ:QQQ) up 0.26%, the State Street SPDR S&amp;P 500 ETF Trust (NYSE:SPY) up 0.36%, and the State Street SPDR Dow Jones Indust Avg ETF Trust (NYSE:DIA) up 0.55% at last check.



<h2>Technical Analysis</h2>



Arm is still extended above its major trend gauges, which is why a premarket dip can read more like “cooling off” than “trend break” unless key levels start failing. The stock is trading 4.7% above its 20-day SMA ($203.56), 30% above its 50-day SMA ($163.95), and more than 48% above its 200-day SMA ($143.48), keeping the longer-term trend firmly pointed up.



Momentum, however, is where the tone has softened: MACD is below its signal line, and the histogram is negative, suggesting upside pressure is fading from the prior upswing unless buyers can reassert control. Structurally, the bullish crossover stack remains intact (20-day SMA above the 50-day SMA), and the golden cross that formed in April (50-day SMA above the 200-day SMA) continues to support the bigger-picture uptrend.



<ul>
<li>Key Resistance: $237.50 — near the top of the recent range and just below the $239.50 52-week high, a zone where rebounds can stall</li>
</ul>



<h2>Earnings &amp; Analyst Outlook</h2>



Looking further out, the next major catalyst for the stock arrives with the July 29, 2026 (estimated) earnings report.



<ul>
<li>EPS Estimate: 35 cents (Flat from 35 cents YoY)</li>



<li>Revenue Estimate: $1.26 Billion (Up from $1.05 Billion YoY)</li>



<li>Valuation: P/E of 260.2x (Indicates premium valuation relative to peers)</li>
</ul>



Analyst Consensus &amp; Recent Actions: The stock carries a Buy rating with an average price target of $217.21 across 45 analysts (range: $120.00 to $326.00). Recent analyst moves include:



<ul>
<li>Barclays: Overweight (Raises Target to $250.00) (May 8)</li>



<li>TD Cowen: Buy (Raises Target to $265.00) (May 7)</li>



<li>RBC Capital: Outperform (Raises Target to $260.00) (May 7)</li>
</ul>



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<h2>Price Action</h2>



ARM Stock Price Activity: ARM Holdings shares were down 3.62% at $213.21 during premarket trading on Thursday, according to Benzinga Pro data.



Photo via Shutterstock

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Arm Holdings (ARM) shares fell 3.62% to $213.21 as investors assess supply chain risks amid global trade news. China revenue is projected to drop from 21% in fiscal 2024 to 17% in fiscal 2025. The stock remains above key moving averages, indicating a long-term uptrend, but momentum has softened. Analysts maintain a Buy rating with an average price target of $217.21, while upcoming earnings are expected to show flat EPS of 35 cents and revenue growth to $1.26 billion.

- Arm Holdings plc shares have declined as traders assess the influence of recent AI and export-control news on chip demand and supply chains.  
- The company reported that China contributed 17% of its fiscal 2025 revenue, a decrease from previous years, amid a mixed broader market performance.  
- Analysts maintain a Buy rating for Arm with a price target averaging $217.21, while the next earnings report is expected on July 29, 2026, with revenue projected to rise to $1.26 billion.

Arm Holdings Tech Rally Takes Breather As Investors Weigh Supply Chain Risks