Arm stock falls 6% as HSBC cites foundry bottlenecks, cuts rating to Hold

Arm shares fell over 6% after HSBC downgraded the stock to Hold, citing foundry capacity constraints that could cap earnings upside despite strong long-term growth. HSBC also raised its price target to $315 from $255, but the near-term earnings risk drove the immediate selloff.

Analysis

Arm shares fell over 6% after HSBC downgraded the stock to Hold, citing foundry capacity constraints that could cap earnings upside despite strong long-term growth. HSBC also raised its price target to $315 from $255, but the near-term earnings risk drove the immediate selloff.