Arm Shares Drop Despite Strong Q1 Revenue and Steady Earnings
Arm Holdings shares fell up to 9% after its Q1 earnings missed expectations, with revenue slightly below estimates and a 42% drop in net income. The company is considering developing its own processors and chiplets, which could pose risks to its existing customer relationships. Despite the underwhelming smartphone sector growth, Arm plans to invest more heavily in advanced technology, including AI infrastructure, amid broader industry and geopolitical challenges.