Arm
Holdings shares were surging after the chip designer offered a robust outlook for the March quarter.
For the December quarter,
Arm
reported revenue of $824 million, above expectations of $762 million, according to FactSet. The company also posted adjusted earnings per share of 29 cents, versus the 25 cents consensus.
Guidance was also strong. Arm provide a revenue forecast for the current quarter, ending in March, of $850 million to $900 million, way above the consensus of $779 million at its midpoint.
“Arm delivered another quarter of record revenues driven by continued adoption of the world’s most pervasive compute platform,” CEO Rene Haas wrote in a letter to investors. “The AI wave drove licensing growth as these new devices require Arm’s performant and power-efficient compute platform.”
Arm shares rose by 35% to $104 in after-hours trading Wednesday following the results. Shares are up 27% Thursday morning.
In the investor letter, Arm management said the company is gaining market share in the cloud server market and auto segments. It specifically cited the coming
Nvidia
GH200 AI Superchip datacenter systems, which incorporate Arm technology. Further, more customers are moving to advanced chip designs based on Armv9 technology, which generate double the royalty rates of Armv8 products.
“Key players like Dell Technologies, Hewlett Packard Enterprise (HPE), Lenovo,
Quanta
and
Supermicro
are among those using the GH200 to tackle some of the world’s most challenging problems,” Arm management wrote.
Arm went public in September after pricing its initial public offering at $51 a share. The company makes money from licensing its chip architecture and other chip designs to semiconductor companies and hardware makers.
Write to Tae Kim at [email protected]
Read the full article here
