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Arm shares rose roughly 35% in after-hours trading after the forecast and results were released. The over 30% surge in Arm's stock after its report late on Wednesday lifted its market capitalization by about $26 billion.
(Reuters) -Arm Holdings surged more than 30% on Wednesday after the British tech company forecast fiscal fourth-quarter sales and adjusted profit above Wall Street expectations as customers aim to design new chips for artificial intelligence work, generating higher royalties. Arm's forecast ranges for its fourth quarter had midpoints of $875 million for sales and 30 cents per share for adjusted earnings, above estimates of $780.3 million and 21 cents per share, according to LSEG data. Arm shares rose roughly 35% in after-hours trading after the forecast and results were released.
The Semiconductor Industry Association (SIA) forecast a 13.1% jump in global chip sales to $595.3 billion, compared with a drop of about 8% in sales in 2023.
Construction on the manufacturing facilities now is not expected to be finished until late 2026, the report said, citing people involved in the project. Uncertain demand for its chips used in the traditional server and personal computer markets had led the company to forecast revenue for the first quarter below market estimates late last month. This came as a shift in spending to AI data servers, dominated by rivals Nvidia and aspiring AI competitor Advanced Micro Devices, sapped demand for trad
Apple reported China sales that missed Wall Street targets; Apple's total installed base of devices hit 2.2 billion; iPhone sales in mainland China were down mid-single digits; Apple's sales in China were $20.82 billion; Apple's wearables segment fell to $11.95 billion.