The shares of Arm Holdings (NASDAQ: ARM) are facing headwinds after a successful IPO earlier this month. Due to a lot of hype surrounding the ARM IPO, the shares of the British chipmaker surged by 22.6% after the firm went public. However, bulls failed to gain strength above the $69 level, and ARM stock price plunged 26.6% from that level.
This week, Arm stock is showing a good recovery. The stock is up 4.95% at press time amid a stock market rebound. The benchmark of tech stocks, the NASDAQ 100, showed a 47-point gain, while the S&P500 was also up by 0.2% during the first trading session of the week.
Susquehanna researchers Christopher Rolland and Mehdi Hosseini believe that Arm stock price has reached its maximum value. The analysts gave a natural rating for the stock and a $48 price target. They also warned that the stock of the chipmaker might plunge further from the current level.
According to FactSet, out of the 5 brokers that cover the Arm Holdings, only 1 of the brokers is bullish right now. 3 of the brokers, including Susquehanna, were neutral, while 1 of them was bearish. The average price target for the AI stock is $51.
As I predicted in my previous forecast, ARM broke below $58 and met my price target of $51, which was the initial offering price for the chipmaker’s stock. The chart below also shows the price trading 23.6% below its all-time high of $69, which was made on the very next day of its NASDAQ listing.
It is critical for the price to hold the $51 level. A break below this level will flip the Arm price prediction bearish. To boost investor sentiment, the price needs to break above the major resistance level of $58, as mentioned in chart above.
This post was last modified on Sep 25, 2023, 19:39 BST 19:39