TECH - AI Favorite ARM Earnings Show Cracks Appearing In Ultra Bullish AI Story | Benzinga
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Cracks In Ultra Bullish AI Story
Please click here for an enlarged chart of Arm Holdings PLC - ADR (NASDAQ: ARM).
Note the following:
- This article is about the big picture, not an individual stock. The chart of ARM stock is being used to illustrate the point.
- ARM has been one of the top artificial intelligence favorites of the momo crowd.
- ARM is a British semiconductor design firm that is mostly owned by Japanese company SoftBank Group Corp - ADR (OTC: SFTBY). ARM is known for licensing its designs for smartphone CPUs, such as those used in Apple’s iPhones. Lately, ARM has been pivoting to artificial intelligence.
- The chart shows the gap down after the release of this quarter’s earnings. This indicates another crack in the ultra bullish short-term AI story promoted by momo gurus.
- The chart shows a gap up after last quarter earnings.
- Here are the details of ARM earnings:
- ARM reported Q4 (March) earnings of $0.36 vs. $0.30 consensus.
- Revenues came at $928M vs. $866M consensus.
- Revenues rose 46.6% year-over-year.
- For Q1 (June), the company projects earnings of $0.32 - $0.36 vs. $0.31 consensus.
- The company projects revenues of $875M - $925M vs. $866M consensus.
- For FY25, the company projects earnings of $1.45 - $1.65 vs. $1.54 consensus.
- The company sees revenues of $3.8B - $4.1B vs. $3.98B consensus.
- Royalty revenue was $514M up 37% year-over-year.
- The chart shows that from the peak after last quarter earnings to the recent low, ARM stock lost 47.8% of its value.
- The Arora Report was one of the first to pick up on the AI theme back in 2022 allowing readers and members of The Arora Report to buy artificial intelligence stocks near the lows before the run up started. NVIDIA Corp (NASDAQ: NVDA) is a perfect example of the benefit of knowing early that a change is underway. Click here to see a chart of The Arora Report signals for NVDA.
- ARM stock is falling for two reasons.
- Whisper numbers had moved much higher above the consensus going into earnings. Stocks move based on the difference between whisper numbers and the actual numbers. Whisper numbers are the numbers that analysts privately share with their best ...