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Why Is Arm Stock Falling Tuesday? - ARM Holdings (NASDAQ:ARM)

Morgan Stanley cut Arm to Equal-Weight and said higher R&D spending and slower scaling could pressure margins as the company expands into AGI-focused chips.

Summary
Arm Holdings plc (NASDAQ:ARM) shares fell Tuesday after Morgan Stanley struck a more cautious tone on the company's AI-driven transition, dialing back near-term expectations even as long-term prospects remain intact. The firm downgraded the stock to Equal-Weight from Overweight while lifting its price target to $150 from $135, signaling a more balanced risk-reward outlook. Analyst Take Morgan Stanley analyst Lee Simpson said Arm's push into chip…

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Benzinga broke the news in New York, United States on Tuesday, April 7, 2026.
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