Stock Track | ARM Holdings Plunges Despite Earnings Beat as Growth Concerns Linger

Stock Track11-07

ARM Holdings Ltd (NASDAQ: ARM), the chip design company, saw its stock plunge over 5% in after-hours trading on Monday, despite reporting better-than-expected fiscal Q2 2025 earnings and issuing a solid outlook for the current quarter. The selloff highlighted lingering concerns about the company's lofty valuation and ability to sustain robust growth amid cyclical headwinds in the broader semiconductor industry outside of the AI sector.

For the quarter ended September 30, ARM reported adjusted earnings per share of $0.30, surpassing Wall Street's consensus estimate of $0.26. Revenue came in at $844 million, above analysts' expectations of $809.8 million. However, the company's guidance for the current quarter, while solid, fell slightly short of analysts' estimates, with revenue projected between $920 million and $970 million, compared to estimates of $939 million.

The stock's decline suggests investors are skeptical about ARM's ability to maintain its premium valuation, which currently stands at over 76 times estimated earnings, significantly higher than rivals like Nvidia. Some analysts argue that ARM's growth potential may not justify such a premium multiple, especially as the broader semiconductor industry faces cyclical headwinds outside of the AI sector, where ARM's designs are still heavily used in areas such as smartphones.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/1188733007?lang=en_US&edition=fundamental","thumbnail":"","is_english":true,"pubTime":"2024-11-07 09:03","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"1188733007","market":"us","top_or_hot":-1,"title":"Stock Track | ARM Holdings Plunges Despite Earnings Beat as Growth Concerns Linger","media":"Stock Track","content":"<p>ARM Holdings Ltd (NASDAQ: ARM), the chip design company, saw its stock plunge over 5% in after-hours trading on Monday, despite reporting better-than-expected fiscal Q2 2025 earnings and issuing a solid outlook for the current quarter. The selloff highlighted lingering concerns about the company's lofty valuation and ability to sustain robust growth amid cyclical headwinds in the broader semiconductor industry outside of the AI sector.</p>\n\n<p>For the quarter ended September 30, ARM reported adjusted earnings per share of $0.30, surpassing Wall Street's consensus estimate of $0.26. Revenue came in at $844 million, above analysts' expectations of $809.8 million. However, the company's guidance for the current quarter, while solid, fell slightly short of analysts' estimates, with revenue projected between $920 million and $970 million, compared to estimates of $939 million.</p>\n\n<p>The stock's decline suggests investors are skeptical about ARM's ability to maintain its premium valuation, which currently stands at over 76 times estimated earnings, significantly higher than rivals like Nvidia. Some analysts argue that ARM's growth potential may not justify such a premium multiple, especially as the broader semiconductor industry faces cyclical headwinds outside of the AI sector, where ARM's designs are still heavily used in areas such as smartphones.</p>","source":"ai_movement_en","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Stock Track | ARM Holdings Plunges Despite Earnings Beat as Growth Concerns Linger</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nStock Track | ARM Holdings Plunges Despite Earnings Beat as Growth Concerns Linger\n</h2>\n\n<h4 class=\"meta\">\n\n2024-11-07 09:03 北京时间&nbsp;&nbsp;&nbsp;<strong>Stock Track</strong>\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>ARM Holdings Ltd (NASDAQ: ARM), the chip design company, saw its stock plunge over 5% in after-hours trading on Monday, despite reporting better-than-expected fiscal Q2 2025 earnings and issuing a ...</p>\n\n<a href=\"\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"ARM","symbol_name":"ARM Holdings Ltd","start_time":0,"source_url":"","article_id":"1188733007","we_media_id":"1086803395","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=1188733007","pubTimestamp":1730941405,"sourceInfo":{"source_id":"ai_movement_en","name":"Stock Track"},"weMediaInfo":{"media_name":"Stock Track","introduction":"Track stock‘s movements and relevant news","home_visible":1,"id":"1086803395","head_image":"https://static.tigerbbs.com/a81accab1e7ee4144dc051f71903a390"},"summary":"ARM Holdings Ltd , the chip design company, saw its stock plunge over 5% in after-hours trading on Monday, despite reporting better-than-expected fiscal Q2 2025 earnings and issuing a solid outlook for the current quarter. The selloff highlighted lingering concerns about the company's lofty valuation and ability to sustain robust growth amid cyclical headwinds in the broader semiconductor industry outside of the AI sector.For the quarter ended September 30, ARM reported adjusted earnings per sha","collect":0,"end_time":0,"defaultTopTitle":"","property":[],"viewcount":null,"language":"en","relate_stocks":{"ARM":"ARM Holdings Ltd"},"translate_title":"尽管盈利超出预期，但由于增长担忧挥之不去，股票跟踪部门控股公司仍暴跌","themeId":"9eeb7c852ce627a36997b2779814ebed","isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"ARM":1},"content_text":"ARM Holdings Ltd (NASDAQ: ARM), the chip design company, saw its stock plunge over 5% in after-hours trading on Monday, despite reporting better-than-expected fiscal Q2 2025 earnings and issuing a solid outlook for the current quarter. The selloff highlighted lingering concerns about the company's lofty valuation and ability to sustain robust growth amid cyclical headwinds in the broader semiconductor industry outside of the AI sector.\nFor the quarter ended September 30, ARM reported adjusted earnings per share of $0.30, surpassing Wall Street's consensus estimate of $0.26. Revenue came in at $844 million, above analysts' expectations of $809.8 million. However, the company's guidance for the current quarter, while solid, fell slightly short of analysts' estimates, with revenue projected between $920 million and $970 million, compared to estimates of $939 million.\nThe stock's decline suggests investors are skeptical about ARM's ability to maintain its premium valuation, which currently stands at over 76 times estimated earnings, significantly higher than rivals like Nvidia. Some analysts argue that ARM's growth potential may not justify such a premium multiple, especially as the broader semiconductor industry faces cyclical headwinds outside of the AI sector, where ARM's designs are still heavily used in areas such as smartphones.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"movement","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.2","shortVersion":"4.29.2","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/1188733007"}