ARM's 11% Increase Over Three Months: Is It Time to Buy, Hold, or Sell?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 11 2025
0mins
Should l Buy QCOM?
Source: NASDAQ.COM
ARM's Performance: ARM Holdings has seen an 11% increase in shares over the last three months, but this is below the semiconductor industry's 20% growth, raising concerns about its near-term prospects.
Competitive Landscape: ARM's stronghold in power-efficient chip designs for mobile and AI applications is threatened by the rising adoption of RISC-V in China, which could hinder its growth in that market.
Analyst Sentiment: Recent downward revisions in earnings estimates for fiscal 2026 indicate growing caution among analysts regarding ARM's ability to meet expectations, contributing to potential stock volatility.
Valuation Concerns: ARM's stock is currently considered overvalued, trading at significantly higher multiples compared to industry averages, suggesting that investors should hold off on further investments until clearer growth indicators emerge.
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Analyst Views on QCOM
Wall Street analysts forecast QCOM stock price to rise
16 Analyst Rating
10 Buy
5 Hold
1 Sell
Moderate Buy
Current: 127.070
Low
165.00
Averages
197.14
High
225.00
Current: 127.070
Low
165.00
Averages
197.14
High
225.00
About QCOM
Qualcomm Incorporated is engaged in the development and commercialization of foundational technologies for the wireless industry, including third generation (3G), fourth generation (4G) and fifth generation (5G) wireless connectivity, and high-performance and low-power computing, including on-device artificial intelligence. Its segments include Qualcomm CDMA Technologies (QCT), Qualcomm Technology Licensing (QTL) and Qualcomm Strategic Initiatives. QCT develops and supplies integrated circuits and system software based on 3G/4G/5G and other technologies, including radio frequency front-end, digital cockpit and advanced driver assistance and automated driving, Internet of things including consumer electronic devices, industrial devices and edge networking products. QTL grants licenses or otherwise provides rights to use portions of its intellectual property portfolio that includes certain patent rights essential to and/or useful in the manufacture and sale of certain wireless products.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Surge in Trading Volume: Today's trading volume reached 50.9 million shares, about 194% above the three-month average of 17.3 million shares, indicating heightened investor interest in Marvell's future performance and suggesting sustained market momentum.
- Strategic Partnership Impact: The strategic partnership between Nvidia and Marvell will integrate Marvell's data center connectivity solutions with Nvidia's AI factory offerings, expected to significantly enhance Marvell's role in AI infrastructure and drive sales growth.
- Strong Financial Performance: Marvell reported a 42% year-over-year revenue increase for fiscal 2026, supported by robust AI demand, and today's investment news further strengthens market expectations for continued growth.
See More
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- Market Sentiment Analysis: The current market sentiment is heavily bearish, with investors adopting a cautious outlook; however, historical trends indicate that market lows often precede improvements in sentiment and fundamentals, suggesting potential rebound opportunities.
- Semiconductor ETF Performance: The VanEck Semiconductor ETF (SMH) has shown a standard A-B-C corrective pattern since its February highs, currently trading in the $360 to $370 range, which may act as a support zone, indicating that selling pressure could be nearing exhaustion.
- Relative Strength Indicator: The ratio chart of SMH to the S&P 500 indicates a more tempered performance of the semiconductor sector relative to the broader market, with a triangle consolidation pattern that typically suggests a potential upward breakout, further supporting a long-term bullish outlook.
- Nvidia Valuation Analysis: Nvidia (NVDA) is currently trading at a forward P/E ratio of 20.5 times, with expected earnings of $8.29 per share in 2027, highlighting its growth potential significantly surpassing the market average; investors face a choice between paying 46 times earnings for a slow-growing company or approximately 20 times for a company with nearly 70% growth.
See More
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- Cloud Revenue Decline: Huawei's cloud revenue from external customers fell by 3.5% to 32.16 billion yuan ($4.6 billion) in 2025, indicating significant competitive pressure, particularly from companies like ByteDance, amid global cloud service market expansion.
- Overall Revenue Growth Weakness: While Huawei's total cloud revenue, including internal customers, rose by 4.8% to 72.8 billion yuan, the main ICT infrastructure segment's growth slowed to 2.6% from 4.9% in 2024, reflecting insufficient market acceptance of its self-developed Ascend AI chip solutions.
- Consumer Business Slowdown: Huawei's consumer business revenue grew only 1.6% to 344.47 billion yuan in 2025, a stark contrast to the 38.3% growth in 2024, highlighting the ongoing impact of U.S. sanctions and a sluggish Chinese consumer market.
- Innovative R&D Investment: Huawei invested a record 192.3 billion yuan in R&D in 2025, accounting for 21.8% of total revenue, demonstrating the company's commitment to technological innovation despite challenges, aiming to maintain a competitive edge in future markets.
See More
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- Market Performance Analysis: In Q1 2023, the VanEck Semiconductor ETF (SMH) showed strong performance, outperforming the S&P 500 by approximately 7 percentage points year-to-date; however, it faces short-term downside leadership risks that could impact overall market sentiment.
- Technical Indicator Warning: According to Tom DeMark's TD Combo model, SMH's long-term uptrend shows signs of exhaustion, with the last two 'sell' signals accurately predicting cyclical corrections in late 2021 and mid-2024, indicating a potential nine-month corrective phase ahead.
- Taiwan Semiconductor's Market Position: As the second-largest holding in SMH, TSMC's stock has recently broken down below the daily cloud model, facing short-term support at $293 from a 38.2% Fibonacci retracement, with a further drop below $232 potentially exacerbating market downside pressure.
- Industry Outlook: Semiconductor stocks typically lead both uptrends and downtrends, thus the loss of relative strength for SMH and its constituents is viewed as a bearish signal for major indices, prompting investors to be cautious of the potential risks posed by bearish technical catalysts.
See More
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- Market Diversification Efforts: Qualcomm is expanding into automotive, PCs, and data centers, but these efforts are partly offset by losing market share with key smartphone customers like Apple and Chinese OEMs, indicating challenges in diversifying revenue streams.
- Analyst Rating Change: Goldman Sachs initiated coverage with a Neutral rating and set a $135 12-month price target, reflecting concerns over short-term smartphone demand destruction due to rising memory costs, which could impact Qualcomm's largest segment.
- Increased Competitive Pressure: Qualcomm has maintained stable share with Samsung but has lost approximately 200 basis points to MediaTek in the smartphone application processor market over the past three years, particularly in the Android market, highlighting a challenging competitive landscape.
- Automotive Solutions Outlook: Qualcomm's Snapdragon Digital Cockpit platform is seen as a bright spot for future growth, particularly in automotive solutions and industrial IoT, expected to benefit from strong recovery in that segment, despite the overall difficult market environment.
See More
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- S&P 500 Performance Review: The S&P 500 has faced nearly a 6% decline in March, marking its fifth consecutive weekly loss, yet it narrowly avoids entering correction territory, with upcoming job reports expected to provide insights into economic health.
- Meta Platforms Investment Advice: Morgan Stanley recommends buying Meta Platforms, asserting that sentiment has bottomed out, and despite the company facing two litigation losses last week that impacted stock prices, early trading shows a slight recovery, indicating renewed investor confidence.
- Oracle's Positive Outlook: Bernstein analysts view Oracle's cloud and database sectors as potential AI winners, setting a price target of $319, which is more than double Friday's closing price of nearly $140, reflecting strong market confidence in its growth prospects.
See More
