Arm Holdings stock fell about 8% on Monday as investors took profits following a rally and a sharp move in Intel, despite no company-specific news.

Arm fell about 8% on Monday after jumping nearly 15% on Friday and climbing more than 50% from its April 7 low.

The pullback reflected a broader reset in AI and CPU stocks, as Arm has been a volatile beneficiary of the shift toward agentic AI (AI systems that make autonomous decisions), which is boosting demand for central processing units.

Arm trades at about 130 times adjusted earnings, but management expects annual revenue to reach $25 billion by 2031. The company will report earnings next Wednesday.

In March, Arm said it would design its own chip for the first time, marking a break from its long licensing model.