ARM Stock Recent News

The Nasdaq Composite tumbled 5% from its record high in the past week as investors were hit with worrisome economic data, including the worst consumer sentiment reading in 15 months. However, certain Wall Street analysts still think monster gains are possible in the next year for Arm Holdings (ARM -2.73%) and Axon Enterprise (AXON -0.62%).

Investors are cheering the latest sign of a less restrictive regulatory environment.

Artificial intelligence (AI) is a great sector to invest in as a rapidly expanding industry with years of growth ahead. And you have a wide selection of AI companies to choose from when making an investment decision.

The first full month of 2025 is in the books, and the stock market is off to a decent start. The major indexes -- the S&P 500, Nasdaq Composite, and Dow Jones Industrial Average -- were up 2.7%, 1.6%, and 4.7%, respectively.

Many investors gravitate toward Nvidia as their top artificial intelligence (AI) stock. After all, it's the world's leading producer of data center GPUs for processing complex AI tasks, and most of the world's leading AI software companies need to keep accumulating more of its chips to support their growing AI applications.

Arm Holdings (ARM 0.49%) has been a strong stock to own since it went public in September 2023. After hitting the market at $51 per share, Arm's stock has since tripled in price to $159 as of this writing.

Given the recent surge in Arm Holdings shares, we evaluate the stock's current position to determine whether it presents a good investment opportunity.

CNBC's Kristina Partsinevelos joins 'Squawk on the Street' to discuss the latest news in the chips space.

Nvidia cut its stakes in chip designer Arm and exited its position in SoundHound AI. Both stocks were falling on the news.

Nvidia reduced its stake in British chip firm Arm Holdings by about 44% and exited its holdings in Serve Robotics and SoundHound AI in the fourth quarter, a regulatory filing showed on Friday.