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Arm to develop own chips; stock falls as outlook disappoints
UNITED KINGDOM, JUL 30 – Arm is investing in developing its own chips to diversify beyond licensing, but its second-quarter profit forecast fell below analyst estimates, causing an 8% stock decline, analysts said.
- On Wednesday, Arm Holdings announced it is investing in developing its own chips, marking a shift from its licensing model, Haas said.
- Departing from its licensing roots, Arm introduced Compute Subsystems several years ago to simplify SoC development and diversify into data center markets.
- Claiming `Our Compute Subsystems, CSS, are helping customers move faster and the demand has exceeded our expectations. Our first generation of CSS is now in market with five customers and is delivering double the royalty of Armv9,` Haas said during a conference call.
- Investors reacted by sending Arm shares down around 8 per cent on Wednesday and plunged 12 per cent on Thursday after muted guidance.
- Amid tariff volatility, Arm's outlook underscores global trade tensions, with smartphone shipments increasing just 1 per cent in the April-June period, Haas said.
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NBC Chicago+3 Reposted by 3 other sources
Arm stock tumbles on chip designer's muted profit forecast
Arm CEO Rene Haas indicated the company plans to invest in its own chip development.
·Chicago, United States
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Arm Holdings Faces Investor Concerns Over New Chip Strategy
Arm Holdings' shares dropped 7% premarket as the company plans to invest in its own chip development, concerning investors about its new strategy, potentially competing with clients. Despite a significant stock rise since 2023, profit forecasts fell short of Wall Street's estimates due to global trade tensions.
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Arm drops some clues about its future, but they’re not enough to help the stock
Arm said it’s exploring ways to expand its business, but investors seem focused on the chip-design company’s lukewarm outlook. Article Attribution | Read More at Article Source The post Arm drops some clues about its future, but they’re not enough to help the stock appeared first on RocketNews.
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Total News Sources13
Leaning Left4Leaning Right1Center5Last UpdatedBias Distribution50% Center
Bias Distribution
- 50% of the sources are Center
50% Center
L 40%
C 50%
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