Shares of Arm Holdings skyrocketed over 50% on the Nasdaq Thursday following the release of its fiscal Q3 earnings report. The U.K.-based designer of central processing unit (CPU) chips reported adjusted earnings per share of 29 cents, compared to the expected 25 cents, and revenue reaching $824 million against an expected $762 million.
Investor excitement is likely also being fueled by the company’s boosted sales guidance for fiscal 2024, which it raised from roughly $3.08 billion to as much as $3.21 billion, in addition to growing hype around artificial intelligence (AI). Arm expects to be a key player in an AI-driven market. In the company’s own words, Arm “is and will be foundational to everything happening with AI. Put simply, AI runs on Arm now, and will in the future.”
Arm, which considers itself “the R&D department for the entire semiconductor industry,” designs chips but does not manufacture them. Instead, its business is in selling licenses to other production companies.
These chips go on to power smartphones, PCs, and other devices. Back in September, the company secured a deal with Apple through 2040, making it the long-standing chip designer for iPhones, iPads, and Macs. This promises long-term revenue for existing licenses in addition to its strategic position in an AI-based market.
Arm conducted its initial public offering (IPO) in mid-September 2023. A month later, its shares saw a 40% upside. The company revealed at the time that more than 260 companies, including Nvidia and Qualcomm, would ship their designed chips by 31 March 2023.
Its fiscal Q3 report covers the period ending December 31, and is its second quarterly report released by the newly public company. It also marks the first thorough overview of the company’s performance since it began publicly trading.
As of midday on Thursday, Arm stock was trading at $122 a share, up more than 72% over the past five days.
Login to add comment
Other posts in this group
Elon Musk on Monday targeted Apple and OpenAI in an antitrust lawsuit alleging that th
Meta is setting up a new California-focused political action committee (PAC) to back s
The U.S. Army is turning to sponcon to reach Gen Z.
Steven Kelly, who has more than 1.3 million Instagram followe
EDITOR’S NOTE — This story includes discussion of suicide. If you or someone you know needs help, the national suicide and crisis lifeline in the U.S. is available by calling or texting 988.
Meghan, Duchess of Sussex’ latest season of her reality show, With Love, Meghan, drops today on Netflix. In line with the stream
For understandable reasons, most technology coverage tends to focus more on the physical or visual
