Arm's Architecture Powers Major Tech Giants, but Stock Takes a Hit After IPO Earnings Report

Arm, the dominant company in chip architecture, is gaining chip dominance with its architecture being used by major tech giants such as Apple, Nvidia, AMD, Amazon, Qualcomm, and more. Arm's revenue is up 28% on an annual basis, but its revenue guidance fell short of expectations. Arm's architecture enables chips to use less power than those made with x86, and it has seen a surge in adoption, particularly in the PC market. However, Arm faces competition from RISC-V and x86, and it has also faced risks from geopolitical uncertainty and the decline in smartphone sales. Despite these challenges, Arm continues to expand its presence in various markets, including AI and automotive.