Arm Slides as Tepid Outlook Fuels Concerns Over AI Slowdown
- Chip designer has been seen as key beneficiary of AI boom
- CEO says company remains confident in long-term growth
Integrated circuit microchips designed by ARM.
Photographer: Chris Ratcliffe/BloombergThis article is for subscribers only.
Arm Holdings Plc shares tumbled after the chip designer gave a lukewarm revenue forecast for the fiscal year, raising concerns that the tech industry’s artificial intelligence spending spree is slowing.
For fiscal 2025, which ends next March, revenue will be $3.8 billion to $4.1 billion, the company said Wednesday. Profit will be $1.45 to $1.65 a share. Analysts were predicting a total of $4.01 billion — representing a gain of 26% — and a profit of $1.53 a share.