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Arm Holdings reported relatively strong quarterly results but failed to upgrade guidance for the rest of the year, disappointing investors.
Arm CPUs are the dominant processors in mobile devices, so the chipmaker should benefit as edge AI creates demand for more powerful mobile CPUs. Arm has been gaining share in personal computers and data center servers with help from customers like Alphabet, Amazon, Apple, and Microsoft.
U.S. chip stocks plummeted on Thursday, on track for their worst day since 2020, after a conservative forecast from Arm Holdings dampened investor optimism about artificial intelligence and data signaled a cooling economy.
Arm Holdings plc was overvalued heading into FQ1'25 earnings, with the valuation based on AI hype and not forecasted growth rates. The chip company actually guided a potential sales slump in FQ2. The stock trades at 92x FY25 EPS targets, suggesting a valuation below $100 is warranted.
Goldman Sachs analyst Toshiya Hari reiterated a Buy rating on Arm Holdings ARM with a price target of $144, up from $143.
Analysts still see reason to be upbeat about Arm Holding PLC's potential, despite a miss on royalty revenue that's sending the chip designer's stock down about 17% in Thursday trading.
Arm reported quarterly results yesterday and beat sales and earnings expectations. Despite the beats, the stock is falling because performance failed to match higher-end targets on Wall Street.
Arm Holdings shares slumped 16% in afternoon trading on Thursday, after the British chip firm's tepid revenue forecast sparked concerns it may not be immediately gaining from a boom in AI technologies like some of its peers.
Arm Holdings stock is deep in the red Thursday after the chipmaker's full-year outlook fell short of Wall Street's expectations. Here's what you need to know.
Rene Haas, Arm CEO, joins 'Squawk on the Street' to discuss the company's earnings results, integration of AI, and more.