Arm Shares Plunge as Chip Strategy and Weak Forecast Alarm Investors

Reported 2 days ago

Arm Holdings experienced a nearly 13% drop in share price after announcing plans to invest heavily in chip development, which may undermine future profits and disappoint investors. This shift from their traditional business model of licensing technology to developing their own chips puts them in competition with existing clients like Nvidia and Amazon. Additionally, Arm's profit forecast for the upcoming fiscal quarter fell short of Wall Street expectations due to concerns over global trade tensions impacting demand in the smartphone sector.

Source: YAHOO

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