SIA Chartsā relative strength rankings assist investors in identifying stocks that are outperforming their peers or index benchmarks. Outperformance typically indicates positive investor expectations for a company or sector. The rankings not only help investors identify which stocks within a universe are outperforming or underperforming against their peers, but also when relative performance trends are beginning to change.
The Electronics and Semiconductor space has continued to show resilience for quite some time, as the sector remains in the favored zone of SIAās Stock Sector Report. It currently holds the fifth spot out of 31 positions and has maintained this ranking for well over a month. Today, we highlight another semiconductor name exhibiting outperformance of late. To illustrate this strength, we review the shares of a lesser-known company, ARM Holdings PLC ADS (ARM), a constituent of the Nasdaq 100 Index.
ARM currently occupies the 26th position out of 103 in the SIA Nasdaq 100 Index Report and has shown consistent strength recently. The stock has risen 33 spots over the past week, 42 spots over the past month, and 18 spots over the past quarter. It has just entered the favoured zone of the report within the last few days. In the attached candlestick chart, ARM shares have primarily traded within a broad two-year sideways pattern, ranging from highs in the $180 area during the summer of 2024 and January 2025, to lows in the $80 range in April of this year and April 2024.
Focusing on this yearās recent price action, the shares bottomed at $80 in April, where bullish sentiment took over and an accumulation phase began. This uptrend extended through early July, with the shares peaking just below $170. In the past quarter, the shares have consolidated sideways once again, though within a narrower range between the July high of approximately $170 and the $130 lows reached in August and September.
Currently, the shares appear to be attempting another upward move, having broken above the early July high near $168. Should strength continue above this level, clustered resistance can be found at $180, followed by the next resistance near the all-time high just under $190. Time will tell whether the shares can reach or break above this level and move towards new highs. If a reversal occurs within the current range, support is located near $140 and, below that, at $130.
The Point and Figure chart provides a more precise view of upcoming support and resistance levels. At a 2% scale suitable for investment-grade analysis, the chart shows that ARM shares bottomed at approximately $87.30 in April. A steady pattern of higher highs and higher lows followed, with a strong column of Xs forming through May and July, ultimately peaking at $164.51.
A sideways consolidation phase then emerged, lasting until this month, when the shares broke above the July high. Upcoming resistance lies near $181.63, with further resistance above that at $188.97. On the downside, clear support levels are identified at $158.12, $151.98, and $137.66 on a 3-box reversal. The shares currently display a bullish Double Top pattern, and with an SMAX score of 9 out of 10, ARM Holdings PLC continues to exhibit strong near-term strength relative to other asset classes.
ARM Holdings architects, develops, and licenses high-performance, low-cost, and energy-efficient CPU products and related technologies, on which many of the worldās leading semiconductor companies and OEMs rely to develop their products. ARMās energy-efficient CPUs have enabled advanced computing in more than 99% of the worldās smartphones for the year ending December 31, 2022, with over 250 billion chips produced cumulatively. These chips power everything from the smallest sensors to the most powerful supercomputers.
Today, ARM CPUs run the vast majority of the worldās software, including operating systems and applications for smartphones, tablets, and personal computers, as well as data centres, networking equipment, and vehicles. They also drive embedded operating systems in devices such as smartwatches, thermostats, drones, and industrial robotics.
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