Latest news with #chipdevelopment
CNA
31-07-2025
- Business
- CNA
Arm sinks as chip-making ambitions, muted forecast shake investor confidence
Arm Holdings shares tumbled nearly 13 per cent in early trading on Thursday as the chip tech provider's plan to invest in its own chip development, which would bite into future profits, disappointed investors. The company's decision to ramp up investment in chip creation marks a significant pivot from its legacy business model of licensing intellectual property to the likes of Nvidia and Amazon, which already design their own chips. This new chip strategy positions it to compete with its own customers and could lead to conflicts of interest, J.P. Morgan analyst Harlan Sur said. "The (Arm) team remains focused on system-level, software, and AI initiatives. However, we are increasingly concerned with its strategy to develop full chip solutions," Sur said. Arm forecast fiscal second-quarter profit slightly below Wall Street estimates, as escalating global trade tensions threaten demand in its core smartphone market, disappointing investors who had driven the stock sharply higher in recent months. Arm has jumped 150 per cent since its stock market debut in 2023, and has risen 32.4 per cent so far this year, compared with gains of about 34 per cent for Nvidia and 49 per cent for AMD. The shares trade at over 80 times the earnings estimates, much higher than rivals Nvidia's 34.91 and AMD's 35.33. Arm's subdued forecast highlights the uncertainty facing global manufacturers and supply chains amid ongoing U.S. trade tensions. At least nine brokerages raised their price targets on the stock, while two lowered theirs, bringing the median to $155, according to data compiled by LSEG.
Yahoo
31-07-2025
- Business
- Yahoo
Arm sinks as chip ambitions, muted forecast shake investor confidence
(Corrects to add company identifier) (Reuters) -Arm Holdings shares fell 7% in premarket trading on Thursday as the chip tech provider's plan to invest in its own chip development, which would bite into future profits, disappointed investors. Arm's decision to ramp up investment in chip creation marks a significant pivot from its legacy business model of licensing intellectual property to tech heavyweights like Nvidia and companies that already design their own chips. Potential conflicts of interest could arise as Arm's chip strategy positions it to compete with its own customers, said analysts at J.P. Morgan led by Harlan Sur. "The (Arm) team remains focused on system-level, software, and AI initiatives. However, we are increasingly concerned with its strategy to develop full chip solutions," Sur said. Arm forecast fiscal second-quarter profit slightly below Wall Street estimates, as escalating global trade tensions threaten demand in its core smartphone market, disappointing investors who had driven the stock sharply higher in recent months. Arm has jumped 150% since its stock market debut in 2023, and has risen 32.4% so far this year, compared with gains of about 34% for Nvidia and 49% for AMD. The shares trade at over 80 times the earnings estimates, much higher than rivals Nvidia's 34.91 and AMD's 35.33. Arm's subdued forecast highlights the uncertainty facing global manufacturers and supply chains amid ongoing U.S. trade tensions. At least two brokerages raised their price targets on the stock, bringing the median to $155, according to data compiled by LSEG. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
31-07-2025
- Business
- Reuters
Arm sinks as chip ambitions, muted forecast shake investor confidence
July 31 (Reuters) - Arm Holdings shares fell 7% in premarket trading on Thursday as the chip tech provider's plan to invest in its own chip development, which would bite into future profits, disappointed investors. Arm's decision to ramp up investment in chip creation marks a significant pivot from its legacy business model of licensing intellectual property to tech heavyweights like Nvidia (NVDA.O), opens new tab and (AMZN.O), opens new tab, companies that already design their own chips. Potential conflicts of interest could arise as Arm's chip strategy positions it to compete with its own customers, said analysts at J.P. Morgan led by Harlan Sur. "The (Arm) team remains focused on system-level, software, and AI initiatives. However, we are increasingly concerned with its strategy to develop full chip solutions," Sur said. Arm forecast fiscal second-quarter profit slightly below Wall Street estimates, as escalating global trade tensions threaten demand in its core smartphone market, disappointing investors who had driven the stock sharply higher in recent months. Arm has jumped 150% since its stock market debut in 2023, and has risen 32.4% so far this year, compared with gains of about 34% for Nvidia (NVDA.O), opens new tab and 49% for AMD (AMD.O), opens new tab. The shares trade at over 80 times the earnings estimates, much higher than rivals Nvidia's 34.91 and AMD's 35.33. Arm's subdued forecast highlights the uncertainty facing global manufacturers and supply chains amid ongoing U.S. trade tensions. At least two brokerages raised their price targets on the stock, bringing the median to $155, according to data compiled by LSEG.
South China Morning Post
16-06-2025
- Business
- South China Morning Post
Chinese router maker TP-Link cuts staff at Shanghai chip unit, retains Shenzhen facility
TP-Link, China's leading Wi-fi router manufacturer, has laid off most employees at a chip development unit in Shanghai amid setbacks, according to people familiar with the matter and local media reports. Lianzhou International, known globally as TP-Link Systems and the overseas arm of the router maker, cut the majority of workers at its Shanghai-based chip unit last week, according to two people with knowledge of the situation, who declined to be named because they are not authorised to speak to news media. The lay-offs, first reported by Chinese media on Saturday, primarily affected employees working on the front-end module of Wi-fi chipsets, spanning roles such as algorithms and verification, according to the reports. The total number of affected employees remains unclear. TP-Link did not immediately respond to a request for comment on Monday. One source said the cuts followed difficulties in chip development, with one product failing to pass final testing. TP-Link's booth at Mobile World Congress in Barcelona, Spain, on March 3. Photo: Shutterstock The move signals a downsizing of TP-Link's overseas business, which comes months after the US government reportedly launched a national security probe into the company in December.
Al Bawaba
19-05-2025
- Business
- Al Bawaba
Xiaomi to invest $7B in building its own chip
Published May 19th, 2025 - 09:23 GMT ALBAWABA – Xiaomi, the Chinese multinational technology company, plans to invest $7 billion (50 billion yuan) over the next 10 years to develop its own chip. Also Read Xiaomi's new EVs hit the market at $73K Xiaomi to develop its own chip The company announced plans to develop its own mobile processor chip over the next 10 years. Notably, Xiaomi is expected to unveil its new processor next week, valued at $1.89 billion (13.5 billion yuan) and featuring advanced 3-nanometer technology. According to experts, the company is investing nearly $7 billion (50 billion yuan) over the next 10 years to develop its own chip, aiming to surpass the US in cutting-edge technology and grow its semiconductor clout. Xiaomi is investing nearly $7 billion (50 billion yuan) over the next 10 years to develop its own chip, aiming to surpass the US in cutting-edge technology and grow its semiconductor clout. (Shutterstock) Lei Jun, CEO of Xiaomi, stated: 'Chips are a peak we need to climb and a hard battle we cannot escape if we want to become a great hard tech company.'According to Jun, the company decided to build its own chip back in 2021. Xiaomi has invested approximately $1.89 billion (13.5 billion yuan) over the past four and a half years and plans to invest an additional $840 million (6 billion yuan) in research and development this year. It is worth noting that Xiaomi has collaborated with Qualcomm, the American multinational corporation, and MediaTek, a Taiwanese fabless semiconductor company, in the development of its mobile processors. The company now plans to invest in creating its own chips to compete with Apple and other major players. Also Read Apple says AI will replace iPhones within 10 years © 2000 - 2025 Al Bawaba (
