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.
Ak chcete pridať komentár, prihláste sa
Ostatné príspevky v tejto skupine
Alphabet’s Google has been hit by an EU antitrust complaint over its
I have not found much joy in iPhone photography of late. Between the flat,
Far-right extremists are exploiting TikTok’s “use-this-sound” feature as a Trojan
The role of the CFO is evolving—and fast. In today’s volatile business environment, finance leaders are navigating everything from unpredictable tariffs to tightening regulations and rising geopol
In June, Google released its newest smartphone operating system, Android 16. The same month, Apple previewed its next smartphone oper
