Arm Watch posted an update
Arm forecast third-quarter revenue of about $1.54 billion, only just ahead of the $1.53 billion average expected by analysts surveyed by Bloomberg. The forecast is for the quarter ending in December, with a margin of plus or minus $50 million.
Why it mattersThe forecast puts a number on the question hanging over Arm’s AI data-centre ambitions: how quickly can they translate into sales? Some analysts had expected revenue closer to $1.7 billion, according to CNBC TV18’s report carried by TradingView. Arm’s second-quarter revenue rose 27% to $1.44 billion, with licensing sales up 50% and royalty sales up 8%. The growth is real; so is the gap between a forecast slightly above consensus and the much larger hopes some investors had pencilled in.
Discuss: Should Arm be judged against analysts’ consensus forecast, or against the bigger AI-driven growth expectations investors have built into the business?
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