From IPO High To Stock Slide: Arm Holdings' Rollercoaster Ride Begins With Bearish Analyst Call
Portfolio Pulse from Piero Cingari
Arm Holdings Plc (NASDAQ:ARMH) has seen a 20% drop from its IPO peak, with its ADRs falling 7.2% to $56.37 during Monday afternoon trading. Bernstein Research initiated coverage of Arm with an Underperform rating and a $46 price target per share, citing concerns over Arm's position in the AI market and the rise of the open-source RISC-V chip architecture. Additionally, China, which accounts for 24% of Arm's revenue, poses a risk due to rising tensions between Washington and Beijing.

September 18, 2023 | 7:53 pm
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Arm Holdings' stock has dropped significantly following its IPO, with Bernstein Research giving it an Underperform rating and a $46 price target. The rise of the open-source RISC-V chip architecture and potential issues in China could further impact the stock.
The stock has dropped significantly from its IPO peak, and the Underperform rating from Bernstein Research could further discourage investors. The rise of the open-source RISC-V chip architecture could pose a threat to Arm's market position, and potential issues in China, which accounts for a significant portion of Arm's revenue, could also negatively impact the stock.
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