From Nasdaq:

British technology firm, Arm Holdings, has forecast fourth-quarter sales and adjusted profit above expectations due to new chip designs for AI work. The company’s estimated sales and adjusted earnings are $875 million and 30 cents per share, respectively, compared to Wall Street estimates of $780.3 million and 21 cents per share.

Shares of Arm Holdings rose as much as 13% in after-hours trading following the forecast and results release. For the full fiscal year, the company expects $3.18 billion in revenue and adjusted earnings of $1.22 per share, higher than analysts’ estimates of $3.05 billion and $1.07 per share.

Due to growing interest in newer designs and technologies, Arm has reported a rise in sales and adjusted earnings, backed by customers’ interest in AI technology and new chip designs.

Arm, majority-owned by Japan’s SoftBank Group, creates intellectual property for the world’s smartphone chips. The company has also entered the laptop and data center markets, with moves towards higher royalties and expanded revenue by 2024.

After a smartphone slump in 2023, the expectations for Arm’s expansion in 2024 are due to projected higher royalties and the use of the ninth generation of Arm’s core chip architecture in new devices.
(Source: Reuters)



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