Arm Stock News

SoftBank-owned chip tech provider Arm Holdings recently sought to acquire Alphawave , a UK-based supplier of semiconductor intellectual property, to secure a crucial technology that is crucial for building its own artificial-intelligence processors, according to three sources familiar with the matter.

Arm Holdings PLC (NASDAQ:ARM) and  Palantir Technologies Inc  (NASDAQ:PLTR) shares are tumbling amid a broader market selloff.

The semiconductor giant Nvidia (NVDA -1.51%) is quite the company, developing high-end graphics processing units (GPUs) that help power artificial intelligence (AI) applications. Many investors view Nvidia as the picks-and-shovels play for AI, which would be pretty remarkable given how much AI is expected to change nearly all aspects of our daily lives.

Chip makers who specialize in semiconductors—after being caught up in optimism about artificial intelligence for the past two years, have had a rough couple of months.

Shares of Arm Holdings (ARM -7.47%) were under pressure on Wednesday. The chip design company's stock lost 7.5% as of market close and was down as much as 8.1% earlier in the day.

Nasdaq Composite stocks stabilized in the last week, but the index is still in a correction following a sell-off fueled by weakening consumer sentiment, saber-rattling over tariffs, and concerns about stretched valuations after a surge across tech stocks in 2023 and 2024.

The Nasdaq Composite (^IXIC 2.27%) has spent much of March more than 10% off its all-time high, which put the index in correction territory. But Wall Street analysts see that drawdown an opportunity to buy shares of Arm Holdings (ARM 4.93%) and Upstart Holdings (UPST 6.25%).

Arm Holdings (ARM -0.08%) might not get as much attention as chip designer stocks like Nvidia, but it's one of the most important companies in the semiconductor industry. Its designs are found in more than 99% of smartphones.