Arm Holdings plc (ARM) shares climbed about 5% on Monday as investors returned to artificial intelligence and semiconductor stocks. The broader market also traded higher, with the Nasdaq gaining 1.41% and the S&P 500 rising 0.66%.

Arm Technical Analysis

Arm remains in a strong long-term uptrend. The stock has gained 121.38% over the past year. It continues to trade well above its 50-day simple moving average of $301.29, its 100-day SMA of $219.59, and its 200-day SMA of $178.03. The golden cross formed in April also remains intact, supporting the longer-term bullish trend.

In the short term, the stock is still recovering from its June pullback. Shares trade about 9.7% below the 20-day SMA of $360.16, showing that recent momentum has cooled.

The relative strength index stands at 46.83, a neutral reading that suggests the stock is neither overbought nor oversold. A key support level sits near $298.50, close to the 50-day SMA, where buyers previously stepped in.

Earnings And Analyst Outlook

The company's next earnings report is expected on July 29.

Wall Street expects earnings of 36 cents per share, up from 35 cents a year earlier. Revenue is projected to reach $1.27 billion, compared with $1.05 billion last year.

Arm trades at a price-to-earnings ratio of 370.9, reflecting a premium valuation.

Analysts maintain an overall Buy rating. The average analyst price forecast is $274.90. Recent analyst actions include:

• TD Cowen reiterated Buy and raised its price forecast to $475 on June 24.
• UBS reiterated Buy and raised its price forecast to $470 on June 24.
• Bank of America Securities maintained Neutral and raised its price forecast to $460 on June 23.

Arm Market Data Rankings

Market data gives the stock a Momentum score of 97.81, reflecting the stock's strong long-term trend.

Its Value score is 1.46, indicating the shares remain expensive relative to many peers.

ETF Exposure

Arm is a significant holding in several exchange-traded funds, including:

• REX AI Equity Premium Income ETF (AIPI) with a 5.11% weighting.
• First Trust International Equity Opportunities ETF (FPXI) with a 3.40% weighting.
• VanEck Fabless Semiconductor ETF (SMHX) with a 5.92% weighting.

Large inflows or outflows in these funds can create additional buying or selling pressure for Arm shares.

Arm Price Action

ARM Price Action: Arm Holdings shares were up 4.98% at $330.97 at the time of publication on Monday, according to market data.