Arm Surges Most Since IPO After Giving Strong Sales Outlook.

Arm Holdings, a chip designer, experienced a significant surge in its stock price after issuing a positive earnings forecast. The company's revenue for the upcoming quarter is projected to be between $850 million and $900 million, surpassing analysts' expectations. Arm's expansion into new markets, such as server chips, has contributed to its success, with the smartphone industry now accounting for about a third of its sales. The company's customers are shifting to a new version of its technology, which carries a higher royalty rate and is being used in more devices. Arm's joint venture in China also contributed to its revenue. The company now expects sales of $3.16 billion to $3.21 billion in fiscal 2024. Arm's role in the semiconductor industry involves licensing instructions for software and providing design blocks for companies like Qualcomm. Under CEO Rene Haas, Arm has been moving towards providing more complete layouts, making it more useful to some customers but also a rival to traditional clients. Arm is still majority-owned by SoftBank Group Corp. and had a successful IPO in 2023. [Extracted from the article]

Copyright of Bloomberg.com is the property of Bloomberg, L.P. and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)