Arm Holdings stock rises nearly 6% as record revenue and licensing income drive buying

Traders Union
All News
Stocks
Arm surges 5.68% today on revenue

Highlights

Arm Holdings posted record second quarter revenue of $1.44 billion, a 27% year-over-year increase with licensing revenue up 50%.
Guidance remains cautious due to ongoing weakness in smartphone demand, with royalty revenues rising 8% but missing expectations.
Arm Holdings stock trades below key moving averages with momentum indicators signaling seller dominance and an expected five-day range of $153 to $198.82.

Licensing-driven revenue growth offsets cautious outlook amid mobile softness

Arm Holdings reported record revenue of $1.44 billion in its fiscal second quarter of 2027, representing a 27% year-over-year increase driven by a 50% gain in licensing revenue and strong growth in data center royalties from AI and cloud adoption. Royalty revenues rose 8%, though they missed expectations, and guidance remained cautious, citing ongoing softness in smartphone demand. Executives projected growth in the licensing and data center segments, offset by flat or slowly recovering mobile volumes and continued pressure from higher memory prices.

Anton Kharitonov, expert at Traders Union, believes the recent price rebound in Arm Holdings looks fragile given persistent weakness in price structure. He highlights the failure to reclaim any key moving average and the evidence of strong resistance at $198.82 as warning signs. The negative MACD and ADX readings, paired with oversold indicators, suggest only limited upside relief before renewed selling. Caution is warranted given royalty revenue missed targets and guidance remains weak on smartphone demand. "Investors should treat this bounce with skepticism, as the technical and fundamental headwinds remain firmly in place."

Viktoras Karapetjanc, expert at Traders Union, sees the record revenue and substantial licensing growth as confirmation of Arm’s strong market position. He is confident that expanding data center and AI opportunities lay the groundwork for future advances despite near-term volatility. Karapetjanc emphasizes that cautious guidance represents prudent risk management, not structural weakness. "With a bullish revenue structure and multiple growth levers, I expect further upside once short-term pressures subside."

Jainam Mehta, market strategist, notes Arm’s price is locked below major averages but also observes a cluster of oversold momentum signals. He sees potential for a tactical rebound if price holds above the $175.4 floor, though the dominant trend remains bearish. Mehta points to high intraday volatility as a possible opening for short-term trades. "A swift reversal above $198.82 could flip sentiment, so contrarians may watch for breakout setups in the coming sessions."

Bearish momentum persists as price trapped below key technical barriers

Arm Holdings is trading below its 20-day, 50-day, and 200-day moving averages ($223.18, $254.38, and $230.55), indicating persistent downward pressure across short-, medium-, and long-term trends. The Ichimoku Kijun ($240.64) is providing significant resistance far above current prices, with the near-term ceiling at $198.82 and the floor at $175.4 shaping the immediate price corridor. Momentum remains bearish, signaled by a MACD of -27.35 and an ADX of 30.13. The Relative Strength Index (RSI), Stochastic RSI, and Commodity Channel Index (CCI) are all in oversold territory, introducing the potential for a short-term rebound despite the broader negative trend. Bull/Bear Power at -34.8 points to intraday selling dominance, and the Awesome Oscillator confirms downside momentum. With price near today’s high and intraday volatility at 7.32%, session action favors the highs even as longer trends remain weak.

Previously it was reported that Arm Holdings was experiencing sustained bearish momentum, with downside risks dominating the near-term outlook. The latest analysis reaffirms this trend, highlighting continued technical weakness and advising traders to monitor the $175.4 support as a potential pivot for renewed movement.

Source of Data: ARM Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.