What's Going On With Arm Holdings Stock?
Arm Holdings Plc (NASDAQ:ARM) shares are trading higher Wednesday despite new regulatory filings showing that Nvidia Corp (NASDAQ:NVDA) has fully exited its position in the chip designer.
- ARM Holdings stock is building positive momentum. Why are ARM shares climbing?
Nvidia Unwinds Its Arm Position
According to CNBC, Nvidia's SEC filing on Tuesday confirmed it sold the 1.1 million Arm shares it still held at the end of the third quarter, a stake valued at $155.8 million. The sale officially closes out Nvidia's equity position in Arm, which it has held since the company's 2023 Nasdaq debut.
When Arm went public in 2023, Nvidia was part of a group of strategic investors — including Apple, Google, Samsung and TSMC — that collectively bought $735 million worth of shares in the IPO.
Background: The Failed Acquisition
Nvidia's IPO investment followed its unsuccessful attempt to acquire Arm outright for $40 billion, a deal first announced in 2020 between Nvidia and Arm's then‑owner SoftBank. The takeover collapsed in 2022 after regulators in the U.S. and Europe raised concerns.
Technical Setup Turns Mixed
Arm is currently trading above its short-term moving averages, which suggests some bullish momentum. However, the longer-term moving averages indicate a more cautious outlook, as Arm’s stock is below both its 100-day and 200-day SMAs, hinting at potential weakness in the overall trend.
The RSI is currently at 63.39, which is considered neutral territory, suggesting that while there is some buying interest, the stock isn’t in overbought territory yet, meaning there could still be room for upward movement. MACD is above its signal line, indicating bullish momentum for Arm. The stock may have the potential to continue its upward trend.
Key support is at $108.50, while resistance is at $131.00. If Arm tests the resistance level and breaks above it, it could signal a continuation of the current upward trend, while a drop below support could indicate a reversal or further weakness.
Over the past 12 months, Arm’s stock has declined by 19.44%. This longer-term performance highlights the challenges the stock has faced, and traders should consider this context when evaluating potential entry or exit points.
ARM Price Action: Arm shares were up 1.89% at $129.29 at the time of publication on Wednesday, according to Benzinga Pro.
Image: Shutterstock
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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