Apple Shares Drop Nearly 4% Amid Engineering Setbacks for Foldable iPhone
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 07 2026
0mins
Should l Buy ARM?
Source: CNBC
- Apple Stock Decline: Apple's shares fell nearly 4% on Tuesday, leading the S&P 500 lower, after Nikkei Asia reported setbacks in the engineering test phase for its planned foldable iPhone, which could adversely affect mass production and product shipments.
- Universal Music Group Surge: Shares of Universal Music Group surged almost 13% after hedge fund investor Bill Ackman's Pershing Square Capital Management offered to acquire the company in a cash and stock deal valued at approximately €55.8 billion ($64.4 billion), significantly boosting market expectations for its future.
- Arm Holdings Downgrade: Arm Holdings' stock dropped over 4% following Morgan Stanley's downgrade from overweight to equal weight, citing that the company's strategic pivot to chips amid the AI boom will take time, and near-term risks like rising R&D costs and DRAM shortages could weigh on the stock.
- Healthcare Stocks Bounce Back: Healthcare stocks rallied as the Center for Medicare & Medicaid Services finalized a payment increase for privately run Medicare Advantage plans, exceeding its initial proposal from January, with UnitedHealth jumping 10% and Humana and CVS Health rising 8% and 7%, respectively.
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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: 210.320
Low
120.00
Averages
160.58
High
201.00
Current: 210.320
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.
Market Pullback May Present Long-Term Buying Opportunities
- TSMC's Market Position: Taiwan Semiconductor Manufacturing (TSM) holds over two-thirds of the global foundry market share, and despite the chip industry's efforts to reduce dependence on it, the ongoing demand for AI processing chips has led to a consistent bullish trend since late 2022, indicating strong future potential.
- Roku's Financial Performance: Roku's Q1 revenue increased by 22% year-over-year, with a 27% improvement in gross profit, demonstrating its resilience and adaptability in the streaming industry; despite misconceptions about its business model, it profits regardless of the streaming services' popularity, showcasing robust market competitiveness.
- Growth Potential of Arm Holdings: Arm Holdings (ARM) has seen a 70% increase recently, and although it has pulled back, its price-to-earnings ratio remains above 100, reflecting market expectations for its future profitability, especially as significant agreements with Meta and OpenAI have yet to fully impact its financials, suggesting long-term investment benefits.
- Market Sentiment Shift: Despite the market rally in April, high valuations and mixed first-quarter earnings reports have led investors to reconsider their strategies, potentially resulting in another market correction that could present long-term buying opportunities.
See More
TSMC Continues to Dominate Global Silicon Production
- Market Share Stability: Despite the chip industry's efforts to reduce dependence on TSMC, Counterpoint Research indicates that TSMC still accounts for two-thirds of the global foundry market, highlighting its critical role in the semiconductor supply chain and positioning it to benefit from strong demand for AI processing chips in the future.
- Roku's Strong Performance: Roku's Q1 revenue increased by 22% year-over-year, with a 27% improvement in gross profit, indicating its solid position in the streaming market; despite changing preferences for streaming services, Roku continues to profit, demonstrating the resilience of its business model.
- Arm Holdings' Potential: Arm Holdings has recently secured significant agreements with Meta and OpenAI, and while these revenues are not yet reportable, ongoing collaborations with companies like Apple and Nvidia suggest that Arm's reportable business is brewing, with substantial growth expected in the future.
- Market Correction Anticipation: Although the market has seen a strong rally, high valuations and a mixed start to the first-quarter earnings season have led investors to reconsider, indicating a potential correction that could provide long-term investors with opportunities to buy quality stocks.
See More
Market Thrives Amid Tough Earnings Week, Cramer Warns of Volatility Ahead
- Strong Market Performance: Despite a challenging earnings week, Jim Cramer highlighted that the market has thrived, particularly driven by AI and data center stocks, reflecting robust investor confidence and industry vitality.
- Volatility Warning Ahead: Cramer cautioned investors that while the current market is performing well, the upcoming week may bring more uncertainty, advising against rotating out of tech winners in light of forthcoming earnings and jobs reports.
- Optimistic Industry Outlook: Cramer expressed optimism for companies like Eaton and AMD, anticipating that they will benefit from the expansion of AI infrastructure, which is expected to yield positive returns for investors and further solidify the market position of tech stocks.
- Labor Market Transformation: Cramer noted that the labor market is undergoing significant changes driven by artificial intelligence, with fewer hires but increased productivity, a dynamic that will continue to propel market growth and underscores the long-term investment value of tech stocks.
See More
Market Faces Earnings Season Challenges and Opportunities
- Earnings Season Performance: Jim Cramer noted that while the market powered through a tough earnings week with strong results, the upcoming week could present greater challenges, particularly as the performance of major tech stocks may not be sustainable, urging investors to remain vigilant.
- Industry Dynamics: Cramer believes that demand for data centers remains robust, expecting Eaton to report solid results due to its close ties to the ongoing expansion of AI infrastructure, indicating sustained growth potential in the sector.
- Investment Recommendations: Cramer suggests buying AMD ahead of its earnings report, anticipating potential surprises, while also expressing optimism for connectivity companies like Lumentum and Arista Networks, reflecting confidence in the semiconductor industry.
- Market Trends: Cramer emphasized that this earnings season reveals real evidence of the so-called fourth industrial revolution, with productivity gains driven by artificial intelligence reshaping the labor market, and investors should continue to focus on leading tech stocks to capitalize on this trend.
See More
S&P 500 Hits Record Highs, AI Stocks Shine
- S&P 500 Performance: The S&P 500 is on track to close at another record high after its best month since November 2020, indicating strong market confidence in economic recovery as of Friday.
- AI Stock Surge: AI-related stocks like Arm, Broadcom, and Alphabet saw significant gains in April, with Arm surging nearly 40% and others rising over 30%, reflecting sustained investor enthusiasm and strong demand for AI technologies.
- Impact of Rising Memory Prices: Companies like Meta and Microsoft have raised their capital expenditure guidance due to surging memory prices, with Microsoft projecting $190 billion in capex for 2026, of which $25 billion is attributed to rising component costs, highlighting the tightness in the memory market.
- Multi-Year Supply Agreements: SanDisk has signed five multi-year supply agreements valued at over $11 billion, ensuring stable demand for its customers and indicating strong bargaining power for memory manufacturers, which could impact future sales and margins.
See More
Apple's Strong Earnings Propel Stock Market Higher
- Apple's Earnings Surprise: Apple reported a projected revenue increase of 14% to 17% for the June quarter, significantly exceeding the Street's expectation of 9%, which solidifies its leadership position in the tech industry.
- Record Services Revenue: The company's services revenue reached an all-time high of $30.97 billion, up 16% year-over-year, indicating strong growth potential in its digital services segment and expected to drive future revenue growth.
- Positive Market Reaction: Apple's stock rose by 3.5%, with Wells Fargo raising its price target from $300 to $310, reflecting market optimism regarding its future performance.
- Memory Price Concerns: Despite Sandisk's earnings beating expectations, its shares fell 5%, highlighting market concerns over rising memory chip prices, which could impact overall industry profitability.
See More
Market Pullback May Present Long-Term Buying Opportunities
- TSMC's Market Position: Taiwan Semiconductor Manufacturing (TSM) holds over two-thirds of the global foundry market share, and despite the chip industry's efforts to reduce dependence on it, the ongoing demand for AI processing chips has led to a consistent bullish trend since late 2022, indicating strong future potential.
- Roku's Financial Performance: Roku's Q1 revenue increased by 22% year-over-year, with a 27% improvement in gross profit, demonstrating its resilience and adaptability in the streaming industry; despite misconceptions about its business model, it profits regardless of the streaming services' popularity, showcasing robust market competitiveness.
- Growth Potential of Arm Holdings: Arm Holdings (ARM) has seen a 70% increase recently, and although it has pulled back, its price-to-earnings ratio remains above 100, reflecting market expectations for its future profitability, especially as significant agreements with Meta and OpenAI have yet to fully impact its financials, suggesting long-term investment benefits.
- Market Sentiment Shift: Despite the market rally in April, high valuations and mixed first-quarter earnings reports have led investors to reconsider their strategies, potentially resulting in another market correction that could present long-term buying opportunities.
See More
TSMC Continues to Dominate Global Silicon Production
- Market Share Stability: Despite the chip industry's efforts to reduce dependence on TSMC, Counterpoint Research indicates that TSMC still accounts for two-thirds of the global foundry market, highlighting its critical role in the semiconductor supply chain and positioning it to benefit from strong demand for AI processing chips in the future.
- Roku's Strong Performance: Roku's Q1 revenue increased by 22% year-over-year, with a 27% improvement in gross profit, indicating its solid position in the streaming market; despite changing preferences for streaming services, Roku continues to profit, demonstrating the resilience of its business model.
- Arm Holdings' Potential: Arm Holdings has recently secured significant agreements with Meta and OpenAI, and while these revenues are not yet reportable, ongoing collaborations with companies like Apple and Nvidia suggest that Arm's reportable business is brewing, with substantial growth expected in the future.
- Market Correction Anticipation: Although the market has seen a strong rally, high valuations and a mixed start to the first-quarter earnings season have led investors to reconsider, indicating a potential correction that could provide long-term investors with opportunities to buy quality stocks.
See More
Market Thrives Amid Tough Earnings Week, Cramer Warns of Volatility Ahead
- Strong Market Performance: Despite a challenging earnings week, Jim Cramer highlighted that the market has thrived, particularly driven by AI and data center stocks, reflecting robust investor confidence and industry vitality.
- Volatility Warning Ahead: Cramer cautioned investors that while the current market is performing well, the upcoming week may bring more uncertainty, advising against rotating out of tech winners in light of forthcoming earnings and jobs reports.
- Optimistic Industry Outlook: Cramer expressed optimism for companies like Eaton and AMD, anticipating that they will benefit from the expansion of AI infrastructure, which is expected to yield positive returns for investors and further solidify the market position of tech stocks.
- Labor Market Transformation: Cramer noted that the labor market is undergoing significant changes driven by artificial intelligence, with fewer hires but increased productivity, a dynamic that will continue to propel market growth and underscores the long-term investment value of tech stocks.
See More
Market Faces Earnings Season Challenges and Opportunities
- Earnings Season Performance: Jim Cramer noted that while the market powered through a tough earnings week with strong results, the upcoming week could present greater challenges, particularly as the performance of major tech stocks may not be sustainable, urging investors to remain vigilant.
- Industry Dynamics: Cramer believes that demand for data centers remains robust, expecting Eaton to report solid results due to its close ties to the ongoing expansion of AI infrastructure, indicating sustained growth potential in the sector.
- Investment Recommendations: Cramer suggests buying AMD ahead of its earnings report, anticipating potential surprises, while also expressing optimism for connectivity companies like Lumentum and Arista Networks, reflecting confidence in the semiconductor industry.
- Market Trends: Cramer emphasized that this earnings season reveals real evidence of the so-called fourth industrial revolution, with productivity gains driven by artificial intelligence reshaping the labor market, and investors should continue to focus on leading tech stocks to capitalize on this trend.
See More
S&P 500 Hits Record Highs, AI Stocks Shine
- S&P 500 Performance: The S&P 500 is on track to close at another record high after its best month since November 2020, indicating strong market confidence in economic recovery as of Friday.
- AI Stock Surge: AI-related stocks like Arm, Broadcom, and Alphabet saw significant gains in April, with Arm surging nearly 40% and others rising over 30%, reflecting sustained investor enthusiasm and strong demand for AI technologies.
- Impact of Rising Memory Prices: Companies like Meta and Microsoft have raised their capital expenditure guidance due to surging memory prices, with Microsoft projecting $190 billion in capex for 2026, of which $25 billion is attributed to rising component costs, highlighting the tightness in the memory market.
- Multi-Year Supply Agreements: SanDisk has signed five multi-year supply agreements valued at over $11 billion, ensuring stable demand for its customers and indicating strong bargaining power for memory manufacturers, which could impact future sales and margins.
See More
Apple's Strong Earnings Propel Stock Market Higher
- Apple's Earnings Surprise: Apple reported a projected revenue increase of 14% to 17% for the June quarter, significantly exceeding the Street's expectation of 9%, which solidifies its leadership position in the tech industry.
- Record Services Revenue: The company's services revenue reached an all-time high of $30.97 billion, up 16% year-over-year, indicating strong growth potential in its digital services segment and expected to drive future revenue growth.
- Positive Market Reaction: Apple's stock rose by 3.5%, with Wells Fargo raising its price target from $300 to $310, reflecting market optimism regarding its future performance.
- Memory Price Concerns: Despite Sandisk's earnings beating expectations, its shares fell 5%, highlighting market concerns over rising memory chip prices, which could impact overall industry profitability.
See More
