TECH - Arm Holdings Poised To Challenge Qualcomm Intel AMD In AI Analysts Predict Growth In Chip Design | Benzinga
Arm Holdings Plc – ADR (NASDAQ:ARM) stock is trading lower Thursday as the company’s fiscal 2025 guidance disappointed the Street and raised concerns over a potential slowdown in artificial intelligence spending.
Fiscal year 2025 revenue is expected of $3.8 billion-$4.1 billion, versus the $3.98 billion analyst consensus estimate, and adjusted EPS of $1.45-$1.65, versus the $1.54 analyst consensus estimate. Revenue growth rate of a minimum of 20% in fiscal 2026 and 2027 is also expected.
Also Read: Thanks To Apple, This Analyst Is Optimistic On ARM, Microchip Technology And More Ahead Of Earnings
Arm projected first-quarter revenue of $875 million-$925 million, against the analyst consensus of $868 million, and adjusted EPS of $0.32-$0.36, against the analyst consensus of $0.31.
Arm is trying to emphsize its position as a critical chip design provider by offering more complete technology blueprints to companies such as Amazon.com Inc’s (NASDAQ:AMZN) AWS, Bloomberg reported. Arm’s latest initiatives make it a direct competitor of Qualcomm Inc (NASDAQ:QCOM).
BofA Securities analyst Vivek Arya reiterated a Buy rating on Arm with a price target of $150.
Arya noted Arm as a critical beneficiary of AI adoption at the edge (phones, PCs) and for its ability to displace traditional x86 — Intel Corp (NASDAQ:INTC), Advanced ...