Arm Holdings PLC (NASDAQ:ARM) stock is 15.8% higher at $156.36 at last glance, after the company unveiled its first in-house chip, projected to generate $15 billion in revenue by 2031. Raymond James upgraded ARM to "outperform" from "market perform" in response, while two other analysts hiked their price targets as well.
Analysts leaned bullish coming into today, though nine of the 30 in question still carry a "hold" or worse rating. ARM's average 12-month price target of $155.68 is at a slight deficit to current levels as well, leaving additional room for bull notes. Plus, shares look ripe for a short squeeze, with 10.7% of their available float sold short.
The equity is trading at their highest level since November, breaking above long-term resistance from the 200-day moving average. Looking to resume gains after yesterday snapping a seven-day win streak, shares are also on track for their biggest single-day percentage win since April. So far in 2026, ARM has amassed an sizable 42% lead.
An unwinding of pessimism in the options pits could also generate tailwinds. This is per Arm stock's Schaeffer's put/call open interest ratio (SOIR) of 1.52, which sits higher than 99% of readings from the past year. This suggests short-term options traders lean firmly bearish.
Drilling down to today's options activity, 63,000 calls and 21,000 puts have already crossed the tape, volume that is 10 times the average intraday amount. The most popular contract is the weekly 3/27 155-strike call, where positions are being opened.
