Arm Stock Drops as the Artificial Intelligence (AI) Chip Designer's Earnings Guidance Disappoints Investors. Fiscal Q1 revenue grew 12% year over year, slightly exceeding the 11% Wall Street expectation. Adjusted earnings per share (EPS) declined 13%, which was in line with the analyst consensus estimate. Fiscal Q2 guidance for both the top and bottom lines was slightly lower than Wall Street was expecting.
Arm Holdings (NASDAQ: ARM) stock dropped 8.6% in Wednesday's after-hours trading, following the leading central processing unit (CPU) chip designer's release of its report for the first quarter of its fiscal year 2026 (ended June 30, 2025). The stock's decline is attributable to investors being disappointed with second-quarter guidance for both revenue and adjusted earnings per share (EPS). The midpoint of the guidance ranges for these metrics fell a bit short of the analyst consensus estimates. Arm's first-quarter revenue slightly surpassed Wall Street's estimate, while adjusted EPS was in line with the consensus estimate.
Not a fan of ARM at this moment. Would rather go with Wall Street's Darling, NVDA, and even NVDA is keeping me on my tippy toes (I've decided to wait on the sideline).
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Qualcomm beats on earnings, highlights growth in Meta smartglasses. Qualcomm reported fiscal third-quarter earnings that beat Wall Street expectations. Qualcomm said it expected $2.85 per share at the midpoint of adjusted earnings on $10.7 billion in revenue at the midpoint in the fourth quarter.Qualcomm has intensified its focus on sectors such as data centers and personal computers. Adding to the pressure, U.S. President Donald Trump's renewed tariff threats on semiconductors have emerged as a risk, potentially disrupting supply chains and hurting Qualcomm's handset revenue, analysts said.
Although Qualcomm reported solid performance, the stock sold off. The market isn't happy with Apple's plan to phase out Qualcomm modems by 2027, risking a $7.5 billion annual revenue loss. Automotive and IoT now make up 30% of QCT revenue, but these gains are not enough to offset the looming Apple shortfall and muted handset demand. Given premium valuation and major headwinds, I wwouldn't want to be a shareholder of Qualcomm.
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- icycrystal·08-07thanks for sharing1Report