Why Arm Holdings Stock Lost 34% in July
A broader sell-off in AI stocks weighed on Arm.
Overview
Shares of Arm Holdings (NASDAQ: ARM) were pulling back last month on broader concerns about the AI boom, and as the stock may have gotten overheated in the second quarter.
Chip stocks fell broadly last month as investors questioned the durability of the AI boom, including whether hyperscalers would earn a return on investment for the massive capital expenditures they are pouring into AI infrastructure.
Details
According to data from S&P Global Market Intelligence, the stock finished the month down 34%. As you can see from the chart below, Arm fell in tandem with the VanEck Semiconductor ETF, though it experienced an outsize decline due to its high valuation.
Source
Originally published at www.fool.com.
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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Data may be delayed up to 15 minutes. Past performance is not indicative of future results. Consult a licensed financial advisor before making investment decisions.