From Yahoo Finance: 2025-05-08 05:46:00

Arm shares dropped 9% in premarket trading following a weak revenue forecast due to U.S.-China tariffs. The company, like Apple and AMD, faces increased costs. Arm generates revenue from chip design licensing and royalties. Smartphone sales, which use Arm’s technology, are slowing due to tariffs, affecting revenue. Arm is focusing on AI data centers to offset smartphone demand fluctuations. CEO cites a large licensing deal delay for below-expectations guidance. Brokerages cut price targets, with ARM trading at a high multiple compared to Nvidia and AMD. ARM’s stock has gained 1% this year, while Nvidia and AMD have seen losses.

Read more: Arm shares slump as weak forecasts fuel investor worries