In the last quarter, NVIDIA Corporation (NVDA) fully divested its stake in Arm Holdings plc (ARM), selling its remaining 1.1 million Arm shares for approximately $140 million, exiting entirely by the end of Q4 2025. This follows the collapse of Nvidia’s attempted $40 billion acquisition of Arm in 2020.

Arm Holdings, known for developing the ARM architecture, generates revenue by licensing its processor designs. The company went public on the NASDAQ in 2023, with a market cap of $132.7 billion. ARM stock has seen a 16.75% decline over the past 52 weeks but has gained 14.88% YTD.

Arm’s Q3 earnings beat expectations, driving a stock rebound. Trading at 149.33 times forward earnings, the company reported record revenue of $1.2 billion, up 26% YOY, and non-GAAP EPS of $0.43. For Q4 2026, Arm expects revenue of $1.47 billion. Analysts predict a decline in EPS for fiscal 2026.

KeyBanc and RBC Capital lowered price targets on ARM, citing risks from memory pricing and smartphone unit declines. BofA downgraded ARM to “Neutral.” Despite this, the stock has a consensus “Moderate Buy” rating, with a price target of $154.27 indicating a 21.2% upside potential.

Read more at Yahoo Finance: Nvidia May Have Dumped Arm Stock in Q4, But Should You Buy Shares Now?