Arm Holdings shares drop after revenue forecast barely beats expectations
Arm Holdings, the UK-based tech company and provider of chip designs and licenses, saw its shares drop more than 5% after it shared a revenue forecast that barely beat Wall Street's expectations.
Investors were hoping for bigger numbers, especially from Arm's new AI data center push, but left feeling let down.
Arm Holdings pivots to chip manufacturing
Arm is trying to reinvent itself by moving from just designing chips to actually making them, aiming to generate up to $2 billion in revenue in fiscal 2027 and 2028.
The company recently launched a CPU for AI data centers and posted a solid 27% jump in second-quarter revenue despite smartphone market slowdowns.
On the legal front, Arm was found to have breached a licensing deal with Qualcomm, and a Delaware jury awarded only $2 in damages.