By Asa Fitch
Arm reported record quarterly sales, buoyed by a rush of artificial-intelligence chip buying, but its outlook disappointed investors, sending shares lower.
The chip designer's top executives said AI was driving strong demand for Arm-based semiconductors. In a shareholder letter, they cited new developments in hardware and language models that make AI more viable on personal computers, smartphones and cars.
-- Sales of $983 million last quarter beat the $939 million forecast of analysts polled by FactSet.
-- The revenue forecast of $1.175 billion to $1.275 billion for this quarter broadly met a consensus projection of $1.221 billion.
After rising 6.8% in the previous session, Arm's shares fell roughly 4% Thursday morning.
Arm's basic circuit architecture is inside nearly all of the world's smartphones, and its technology has spread rapidly into other arenas in recent years. Arm-based chips for PCs, servers and a wide variety of other electronic devices have proliferated.
Nvidia, the leader in AI chips, is using an Arm-based central processing unit in some of its most powerful hardware.
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February 06, 2025 10:12 ET (15:12 GMT)
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