Switching elements are crucial components in electrical and electronic systems that undergo severe degradation due to the electrical arc that is generated during breaking. Understanding the behavior of the electrical arc and modifying its characteristics via proper electrode design can significantly improve durability while also promoting optimal performance, reliability, and safety in circuit breakers. This work evaluates the feasibility of carbon nanotube (CNT)-reinforced silver and copper metal matrix composites (MMCs) as switching electrodes and the influence of CNT concentration on the characteristics of the arcs generated. Accordingly, three different concentrations per MMC were manufactured via powder metallurgy. The MMCs and reference materials were subjected to a single break operation and the electrical arcs generated using 100 W and 200 W resistive loads were analyzed. The proposed MMCs displayed promising results for application in low-voltage switches. The addition of CNTs improved performance by maintaining the arc’s energy in the silver MMCs and reducing the arc’s energy in the copper MMCs. Moreover, a CNT concentration of at least 2 wt.% is required to prevent unstable arcs in both metallic matrices. Increased CNT content further promotes the splitting of the electrical arc due to a more complex phase distribution, thereby reducing the arc’s spatial energy density.