Arm Holdings PLC (NASDAQ:ARM) stock is up 3% before the bell after analyst praise. UBS raised its price target to $470 from $260, while TD Cowen lifted its target to $475 from $265, both citing improving demand for central processing units (CPUs) as agentic AI adoption accelerates.
The chipmaker has been one of the market's standout performers in 2026, up 235% year to date. The shares touched a record high on June 18 of $452.70 before pulling back sharply over the last two sessions amid the broader global tech rout.
Notably, short interest rose 14.9% over the last month and now stands at 18.51 million shares, representing 12.8% of ARM's available float. At the stock's average pace of trading, it would take nearly two days for those bearish bets to be covered.
Meanwhile, ARM carries a Schaeffer's Volatility Scorecard (SVS) of 96 out of 100, indicating the shares have consistently delivered larger moves than options traders have priced in over the past year.
