AppLovin's AI-fueled Axon 2 and soaring profitability give APP a stronger near-term edge over ARM's steadier chip-driven growth.
ARM's 15% slide, lofty multiples, and earnings downgrades fuel caution despite mobile dominance and AI inroads.
Arm Holdings plc stock has been trading down since the Q1 '26 report, which disappointed not only on outlook but also on the new transition to designing its own processors. We think this will be a costly near-term endeavor but a long-term success, more so as smartphone end demand recovers in 2026. Arm is projected to reach 50% share of the CPU market, according to the CEO, with a superior adoption rate noted by Bank of America.
China headwinds, CPU venture risks, and a steep valuation premium temper Arm Holdings' AI and IoT momentum.
Arm CEO Rene Haas says the company has invested more aggressively than anticipated. Haas discusses how that investment impacted the chip designer's second-quarter earnings with Ed Ludlow on "Bloomberg Tech.
Arm Holdings PLC (NASDAQ:ARM) shares tumbled more than 12% as its second quarter profit outlook disappointed, drawing focus from in-line Q1 earnings. For Q2, the processor designer projected earnings per share (EPS) between $0.29 and $0.37, at the midpoint below analyst expectations of $0.35.
Arm Holdings shares fell 7% in premarket trading on Thursday as the chip tech provider's plan to invest in its own chip development, which would bite into future profits, disappointed investors.
Arm Holdings plc (NASDAQ:ARM ) Q1 2026 Earnings Conference Call July 30, 2025 5:00 PM ET Company Participants Jason E. Child - Executive VP & CFO Jeff Kvaal - IR Rene Anthony Andrada Haas - CEO & Director Conference Call Participants Andrew Michael Gardiner - Citigroup Inc., Research Division David O'Connor - BNP Paribas Exane, Research Division Joseph Michael Quatrochi - Wells Fargo Securities, LLC, Research Division Kinney Chin - TD Cowen, Research Division Lee John Simpson - Morgan Stanley, Research Division Mark John Lipacis - Evercore ISI Institutional Equities, Research Division Sebastien Cyrus Naji - William Blair & Company L.L.C.
Arm said it's exploring ways to expand its business, but investors seem focused on the chip-design company's lukewarm outlook.
Arm Holdings is investing in developing its own chips, CEO Rene Haas said on Wednesday, marking a major shift to its model of licensing its blueprints to other companies.
ARM's Q1 revenues are likely to rise 11%, but with earnings expected to fall and valuation stretched, timing is key for investors.
Arm Holdings (ARM -0.30%) has emerged as one of the top semiconductor and artificial intelligence (AI) stocks on the market today. After going public in 2023, the stock soared as investors realized it had more exposure to AI than they initially believed.