Why Arm Holdings Stock Was Moving Higher This Week
Key Points
Arm benefited from an improved trade picture with China.
The company is set to work on a chip for OpenAI, according to reports.
It's also teaming up with Meta in a strategic partnership.
- 10 stocks we like better than Arm Holdings ›
Shares of Arm Holdings (NASDAQ: ARM) jumped this week, primarily as part of Monday's surge in tech and artificial intelligence (AI) stocks in response to cooling trade tensions with China after President Donald Trump stepped them up last Friday.
Additionally, Arm, which is known for designing power-efficient CPU architecture, is reportedly working with OpenAI on designing a CPU for a custom Broadcom chip, and it announced a strategic partnership with Meta Platforms on AI efficiency.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
As of 1:58 p.m. ET, the stock was up 11.2% for the week, according to data from S&P Global Market Intelligence.
Image source: Getty Images.
Arm gets an AI tailwind
Arm shares tumbled on Friday after President Trump threatened to levy 100% tariffs on China, but it recouped those losses on Monday as part of a broad recovery in the stock market as Trump backed off on those threats.
Arm stock jumped 11% on Monday on the news. Arm is a high-priced tech company, and China is a major buyer of the semiconductors and smartphones that contain Arm's technology, so the thaw in tensions was clearly a positive sign for the company.
Additionally, The Information reported that Arm is working on a CPU for a chip that OpenAI is developing with Broadcom, and Arm announced a strategic partnership with Meta to scale AI efficiency across Meta's global platforms, a task Arm's technology seems well suited for.
What's next for Arm
It's unclear what stage the AI rally is in. While there's some concern about a bubble, capital spending is still soaring, and adoption is growing as well.
The technology adoption is happening, but it's unclear if valuations are getting stretched. We'll get an update soon from Arm when it reports second-quarter earnings on Nov. 5. Analysts are expecting revenue growth of 26% to $1.06 billion and adjusted earnings per share to increase from $0.30 to $0.33.
Should you invest $1,000 in Arm Holdings right now?
Before you buy stock in Arm Holdings, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Arm Holdings wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $648,924!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,102,333!*
Now, it’s worth noting Stock Advisor’s total average return is 1,052% — a market-crushing outperformance compared to 190% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
See the 10 stocks »
*Stock Advisor returns as of October 13, 2025
Jeremy Bowman has positions in Arm Holdings, Broadcom, and Meta Platforms. The Motley Fool has positions in and recommends Meta Platforms. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy.
Recommended Articles
