Reported 3 months ago
Arm Holdings' shares plummeted 11% after the company released a cautious revenue forecast despite reporting a 39% increase in first-quarter revenue, primarily due to significant licensing deals. Investors remain concerned about slower returns from the booming AI sector compared to rivals like Nvidia, leading to a substantial market value drop. Although Arm benefits from licensing activity linked to AI, it cautions that substantial earnings from these deals may take years to materialize.
Source: YAHOO