Arm Slides After Smartphone Slowdown Overshadows AI Growth

Arm Holdings Plc shares declined as much as 9% after a slowdown in the smartphone industry took a toll on the chip company’s royalty revenue, overshadowing its growth in the AI data center market.

During a conference call to discuss fourth-quarter results, Chief Executive Officer Rene Haas said he saw unit growth for phones “flip to negative” last quarter. But the slowdown is concentrated in the lower end of the market, he said, limiting the impact on Arm.