Latest news with #ArmHoldingsPlc
Yahoo
08-05-2025
- Business
- Yahoo
Arm Tumbles After Weak Forecast, Spurring Slowdown Fears
(Bloomberg) -- Arm Holdings Plc declined in Thursday trading after giving a disappointing sales forecast for the current quarter, stoking concerns about a tariff-fueled slowdown for the chip industry. The Battle Over the Fate of Detroit's Renaissance Center Vail to Borrow Muni Debt to Ease Ski Resort Town Housing Crunch Is Trump's Plan to Reopen the Notorious Alcatraz Prison Realistic? Iceland Plans for a More Volcanic Future As Trump Reshapes Housing Policy, Renters Face Rollback of Rights Revenue will be $1 billion to $1.1 billion in the fiscal first quarter, Arm said in a statement Wednesday. Wall Street had estimated a number at the highest end of that range. Profit will be 30 to 38 cents a share, minus certain items, also lower than analysts' projections. The company blamed the conservative forecast on the timing of new agreements with customers. Arm is in the process of closing licensing deals and wants to make sure they're signed before it adds the revenue to its outlook, according to Chief Executive Officer Rene Haas. Customers continue to push ahead with investment in chips, particularly for artificial intelligence computing, and that's benefiting Arm, he said. Arm gets paid in the form of license fees and royalties for its technology, which governs the ways chips and software communicate. Licensing revenue was $634 million last quarter, while royalty sales were $607 million. 'We've been conservative to make sure we don't overreach,' Haas said in an interview. 'The health of the business is unbelievably strong. We're seeing huge momentum in our data center business.' Arm shares fell as much as 8% after markets opened in New York on Thursday. The stock had been up less than 1% this year through Wednesday's close. Arm's forecast dovetails with commentary from chip industry peers, many of which have told investors there was a strong start to 2025 but that the economic environment has clouded forecasts. The company decided not to provide investors with an annual target because of that uncertainty, executives told analysts on a call. A dearth of forecasts from customers for 2025 means that Arm has less data on which to make its own projections, Chief Financial Officer Jason Child said. Arm's products — classified as services — aren't directly affected by tariffs, Child said. Any hit, which hasn't been felt so far, would come in the form of suppressing demand for devices such as smartphones. Fourth-quarter revenue rose 34% to $1.24 billion, marking the first three-month period that exceeded a billion dollars. That compares with a $1.23 billion prediction from analysts, according to data compiled by Bloomberg. Excluding some items, profit was 55 cents a share, topping the average estimate of 52 cents. Arm's technology is fundamental to semiconductors that run most of the world's smartphones. Under Haas, the Cambridge, UK-based company has sought to extend its reach into data centers and personal computer components — helping it benefit more from AI spending. The chip company's outlook is closely watched because it provides a window into the future component plans of some of the world's largest companies. Those clients license its technology to use as the basis of in-house designed chips. Its royalty revenue – charged based on devices sold – is a barometer for major electronics categories, particularly smartphones. Arm has emerged as a central player in efforts to promote AI technology. It's part of a project called Stargate aimed at expanding US-based AI infrastructure, alongside majority owner SoftBank Group Corp. and OpenAI. It's also involved in a similar endeavor in Japan, where SoftBank is based. Though Arm had its initial public offering two years ago, roughly 90% of the company is still owned by SoftBank. (Updates with shares in the sixth paragraph.) US Border Towns Are Being Ravaged by Canada's Furious Boycott Pre-Tariff Car Buying Frenzy Leaves Americans With a Big Debt Problem Made-in-USA Wheelbarrows Promoted by Trump Are Now Made in China Inside the Dizzying Chaos of Running a Freight Business Under Trump Why Juggling IVF With Work Can Be a Career Killer ©2025 Bloomberg L.P.
Bloomberg
05-03-2025
- Business
- Bloomberg
SoftBank's Arm Signs First-of-Its-Kind Chip Deal With Malaysia, Economy Minister Says
SoftBank-backed chipmaker Arm Holdings Plc has agreed to license chip designs and technology to Malaysia over the next decade, as the nation eyes semiconductor exports of 1.2 trillion ringgit ($270 billion) by 2030. Malaysian Economy Minister Rafizi Ramli speaks exclusively to Bloomberg Television's Haslinda Amin about the details of the pact as the nation targets manufacturing its own chips within five to seven years. (Source: Bloomberg)
Bloomberg
05-03-2025
- Business
- Bloomberg
SoftBank's Arm to Play Key Role in Malaysia's Chip Ambitions
Arm Holdings Plc has agreed to provide chip designs and technology to Malaysia over the next decade, aimed at catapulting the Southeast Asian country beyond chip assembly and into more valuable semiconductor production. Malaysia, which packages roughly a tenth of the world's semiconductors, has inked a pact to pay the SoftBank Group Corp. -owned UK firm $250 million over a period of ten years for a slew of semiconductor-related licenses and knowhow. The government plans to use that to aid local companies design their own chips and target semiconductor exports of 1.2 trillion ringgit ($270 billion) by 2030.
Bloomberg
13-02-2025
- Business
- Bloomberg
Arm Jumps on Report That Meta Will Be First Client for New Chip
Arm Holdings Plc rose as much as 8.4% after the Financial Times reported that it landed Meta Platforms Inc. as an early customer for a new chip. The chip is poised to be the first that Arm is selling under its own brand, and it should be unveiled as early as this summer, the Financial Times said, citing unidentified people familiar with the matter. The UK-based company made its name as a chip designer, licensing its technology to others instead of making its own products.
Bloomberg
05-02-2025
- Business
- Bloomberg
Arm's ‘Monster' Valuation Put to Test as DeepSeek Angst Lingers
Arm Holdings Plc has fared better than most semiconductor stocks in the days since DeepSeek sparked concerns about the outlook for spending on artificial intelligence gear — but its steep valuation leaves it with plenty to prove. With its chip designs used in smartphones, automobiles and data centers, Arm is expected to benefit more from the proliferation of AI-infused devices than many peers. Investors are seeking reassurance when it reports earnings later Wednesday, as uncertainty lingers over firms tied to the build out of AI infrastructure.
