Arm Holdings Plc (NASDAQ:ARM) shares are trading higher on above-average volume Friday. Here's a look at what's going on.

What To Know:

Arm shares have gained more than 30% over the past month, and the stock joined the Nasdaq 100 Index at the end of June. Arm CFO Jason Child highlighted the importance of Arm as industries adopt AI.

"In the age of AI, Arm is more relevant and important than ever. Our DNA in power efficiency is critical to providing foundational compute solutions for the world's AI workloads that continue to grow both in size and complexity. With a staggering amount of energy being consumed by AI, the world is relying on Arm and our industry-leading ecosystem for fresh innovation," Child wrote in a post announcing the company's inclusion in the Nasdaq 100.

Arm CEO Rene Haas highlighted the company's role in the adoption of AI and said analysts have underestimated the pace at which artificial intelligence is advancing. Haas commented during an interview with Yahoo Finance's Market Domination Overtime that AI will significantly change people's lives and that 70% of the world's devices use Arm chips, positioning the company well in the AI race.

According to data from Benzinga Pro, Arm shares are trading well-above the stock's 50-day moving average of $128.48 and marked a new 52-week high of $181.88 on Friday.

ARM Stock Prediction 2024:

Equity research analysts on and off Wall Street typically use earnings growth and fundamental research as a form of valuation and forecasting. But many in trading turn to technical analysis as a way to form predictive models for share price trajectory.

Some investors look to trends to help forecast where they believe a stock could trade at a certain point in the future. Looking at Arm Holdings, an investor could make an assessment about a stock's long term prospects using a moving average and trend line. If they believe a stock will remain above the moving average, which many believe is a bullish signal, they can extrapolate that trend into the future using a trend line. For ArmHoldings, the 200-day moving average sits at $95.66, according to Benzinga Pro, which is below the current price of $179.60. For more on charts and trend lines, see a description here.

Traders believe that when a stock is above its moving average, it is a generally bullish signal, and when it crosses below, it is a more negative signal. Investors could use trend lines to make an educated guess about where a stock could trade at a later date if conditions remain stable.

ARM Price Action: According to Benzinga Pro, Arm Holdings shares are up 6.65% at $179.60 at the time of publication Friday.

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Image: Courtesy of Arm Holdings Plc