Arm Holdings forecasts $1.26B Q1 revenue and shares fall 5.5%
Arm Holdings just announced it expects $1.26 billion in first-quarter revenue, slightly ahead of what analysts predicted.
This boost comes from the growing need for Arm's energy-saving chip designs, which help keep AI data centers cool and efficient.
Still, the excitement was tempered when shares dropped 5.5% after executives admitted they're struggling to keep up with demand for their new AGI CPU chip.
Arm Holdings misses royalty estimate $671 million
Last quarter, Arm pulled in $1.49 billion, beating estimates, but royalty income didn't quite hit the mark at $671 million (analysts wanted $697.1 million).
CEO Rene Haas pointed out that AI growth in data centers is driving royalties up, but supply chain issues mean they've secured enough capacity to fulfill $1 billion of demand for the AGI CPU, and the second $1 billion in orders has not yet been secured.
Even with these hiccups, Arm's stock has soared over 91% this year, though industry-wide memory chip shortages are still making life tricky for device makers and royalty collections alike.