SoftBank's Stock Drop Affects ARM Holdings Amid Market Selloff
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 12 2026
0mins
Source: Coinmarketcap
ARM Holdings PLC's stock is down 5.14% in pre-market trading, hitting a 5-day low as the broader market experiences a downturn.
The decline follows a significant drop in SoftBank Group's shares, which fell over 12%, leading to a selloff in Asian tech stocks. This market weakness has negatively impacted ARM, which is facing increased competition from Qualcomm in the CPU market, raising concerns about future revenue growth. Despite the challenges, ARM has been positioned as a key player in the AI hardware demand surge, but current market conditions are weighing heavily on its stock performance.
Investors are closely monitoring ARM's response to the competitive landscape and the overall market sentiment, as the company has previously shown strong growth potential in AI applications. However, the recent selloff may prompt a reevaluation of its short-term prospects.
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Analyst Views on ARM
Wall Street analysts forecast ARM stock price to fall
24 Analyst Rating
19 Buy
4 Hold
1 Sell
Strong Buy
Current: 322.240
Low
120.00
Averages
160.58
High
201.00
Current: 322.240
Low
120.00
Averages
160.58
High
201.00
About ARM
Arm Holdings plc is a United Kingdom-based company. The Company is engaged in the design of central processing units (CPUs) and compute platforms for semiconductor chips. It develops and licenses CPU products and related technology. Its cloud and data center solutions include Arm AGI CPU and Arm Neoverse Compute Subsystems. The Arm Agentic Generalized Infrastructure (AGI) CPU is a production-ready system on a chip (SoC) for artificial intelligence (AI) data centers, delivering compute at scale. The Arm Neoverse Compute Subsystems (CSS) are pre-validated, performance-optimized compute platforms designed to accelerate infrastructure silicon development. The Company's primary markets include smartphone applications, processors and other chips used in mobile phones, consumer electronics, networking equipment, cloud and data center servers, automotive applications, Internet of Things (loT) and other embedded computing devices.
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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- Optimistic Earnings Outlook: Bloomberg Intelligence forecasts a 23% increase in Q2 earnings, close to Q1's 30% surge, primarily driven by strong performance in AI infrastructure stocks, expected to contribute nearly 60% of earnings growth, further boosting market sentiment.
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See More
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- Service Sector Expansion: The US June ISM services index fell to 54.0, meeting expectations, and although the pace of growth has slowed, the employment sub-index rose to 51.2, surpassing the expected 48.2, suggesting that companies are still hiring amid easing cost pressures, potentially supporting economic growth.
- Strong Q2 Earnings Outlook: Bloomberg Intelligence forecasts a 23% increase in Q2 earnings, close to Q1's 30% growth, primarily driven by AI spending, which is expected to account for nearly 60% of S&P 500 earnings-per-share growth, providing an optimistic outlook for investors.
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See More
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