From CNBC:

Arm, the company behind the CPU architecture in most smartphones and PCs, reported strong third-quarter earnings that exceeded estimates and projected a profitable fourth quarter. The company’s shares rose by as much as 41% in extended trading, but later fell below $100 from a high of $108.89.

In the third quarter, Arm reported earnings per share of 29 cents, higher than the expected 25 cents, and revenue of $824 million, surpassing the expected $761 million. The company’s net income was $87 million, with a total revenue increase of 14% from the previous year.

Arm’s customers shipped 7.7 billion chips in the September quarter, and the company reported an 11% increase in royalty revenue to $470 million, driven by a rebound in the smartphone market and rising sales to automotive and cloud providers.

The company’s emphasis on licensing its CPU designs, particularly for AI applications, led to an 18% annual increase in license and other revenues to $354 million. Arm has become a crucial player in the technology industry, with companies like Apple, Google, Microsoft, and Nvidia using its technology.

Founded in 1990, Arm went public in September after being owned by SoftBank. Its technology became pivotal in the technology industry with the standardization of Arm-based chips in the Apple iPhone and competing Android devices. Arm also reported growth in its licensing business, offering complete designs that semiconductor companies can use, which has contributed to its success in the market.



Read more: Arm earnings report Q3 2024