Arm Holdings Stock Pulls Back After Best Day In A Year: Retail Confidence Unshaken Amid Musk’s Stargate Concerns

Arm Holdings Plc. (ARM) shares dropped over 8% on Thursday, pulling back from their best session in over a year. 

Stocktwits data also shows that message volume on the ticker increased nearly 560% on Wednesday after the announcement. 

Despite the decline, retail sentiment stayed ‘extremely bullish’ amid questions about funding for a $500 billion Stargate AI infrastructure project expected to benefit the British chipmaker.

Tesla and SpaceX CEO Elon Musk raised doubts about the financial backing for the ambitious project, which involves contributions from Arm, Nvidia Corp. (NVDA), and Microsoft Corp. (MSFT) in building data center infrastructure.

Arm Holdings Plc. Sentiment and Message Volume on Jan.23 as of 11:45 a.m. ET | Source: Stocktwits

In a post on X (formerly known as Twitter), the SpaceX and Tesla CEO stated that OpenAI, Oracle (ORCL), and SoftBank (SFTBY) “don’t actually have the money” to back up their pledge. 

"SoftBank has well under $10B secured. I have that on good authority," Musk added.

The project, championed by U.S. President Donald Trump as the largest AI infrastructure initiative in history, aims to fund data centers nationwide.

OpenAI CEO Sam Altman replied directly to Musk, saying that while he genuinely respects his "accomplishments” and thinks he is the “most inspiring entrepreneur of our time," Musk's claim about Softbank's liquidity was "wrong, as you surely know." 

Many investors on Stocktwits announced that they were using the dip to buy more shares and attributed the price drop to profit-taking after the stock jumped by over 15.9% during the previous session—the most significant single-day jump over the last year, according to Koyfin.

The Stargate project is expected to invest $500 billion over four years to bolster the U.S.’s AI infrastructure and outpace global competitors in AI development. 

The project’s first $100 billion will fund the construction of new data centers, with technology contributions from companies like Arm, Nvidia, and Microsoft.

ARM’s stock has more than doubled in value over the past year, with gains of 33% so far in 2025.

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