Arm Holdings (ARM -3.24%) stock is advancing in Tuesday's trading. The semiconductor company's share price was up 5% as of 3 p.m. ET, according to data from S&P Global Market Intelligence.
While there doesn't appear to be any business-specific news behind the gains, investors are feeling less worried about the company's prospects in China. Arm stock had seen big sell-offs late last week due to tense geopolitical dynamics between the U.S., China, and Taiwan, but investors are seeing some signs that are helping to ease concerns.
Investors are breathing easier after last week's geopolitical jitters
Delegates representing U.S. businesses took part in discussions with Chinese leaders yesterday. American tech representatives met with China's vice-premier He Lifeng and foreign minister Wang Yi. Apple's chief operating officer, Jeff Williams, and Micron Technology's president, Sanjay Mehrotra, were among the tech representatives present at the meetings.
China's representatives at the event encouraged U.S. businesses to remain active participants in China's reform and modernization initiatives. The leaders also expressed desires for help with promoting an understanding of China to business and governmental bodies in the U.S.
While tensions between the two countries continue to present major uncertainty and risk factors for businesses, the comments reported from the recent discussions largely centered around the potential for continued cooperation. That's helping investors feel more confident in the prospects for Arm and other semiconductor stocks.
What comes next for Arm?
News of the recent discussions between Chinese government officials and U.S. business leaders followed a report from Reuters yesterday indicating that Nvidia was moving ahead with a variation of its current top-of-the-line graphics processing unit (GPU) for sale in China. It looks like many large tech companies are not currently planning to radically alter their strategies in China. In general, that kind of stability bodes well for the market at large -- and chip stocks and growth stocks in particular.
When it comes to Arm's individual business performance and near-term outlook, investors won't have to wait long for an update. After the market closes on July 31, the company will report results for the first quarter of its 2025 fiscal year, which wrapped at the end of June.
