The Arm’s stock had experienced a significant increase in value over the past few trading days, resulting in a market valuation comparable to that of Goldman Sachs and Boeing. However, Arm Holding PLC’s impressive stock rally came to a halt on Tuesday, with its shares recording their largest daily decline on record. The Arm’s stock closed more than 19% lower in Tuesday’s trading, marking its biggest single-day percentage loss since going public five months ago.

Before this, Arm shares had never experienced a single-session drop of more than ten percent. Arm’s stock surge on Thursday caused short sellers to suffer paper losses of $445 million. Arm’s stock almost doubled in the three trading sessions after the company’s earnings report, which was the last day for the broader market and tech stocks in general.

Previously, Arm’s shares had not experienced a single-day drop of more than ten percent. The surge in Arm’s stock on Thursday resulted in short sellers losing approximately $445 million in paper losses. Following the company’s earnings report, Arm’s stock almost doubled in value throughout three sessions, which was the last day for the broader market and technology stocks in general.

In Last week, Arm’s financial results and guidance pleasantly surprised Wall Street, indicating that the company was capitalizing on the growing interest in artificial intelligence. With the recent significant movements in Nvidia Corp’s stock (NVDA) and other AI-related companies, investors seemed eager to not miss out on the potential for Arm to become the next big AI stock.