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ARM price surges as it crushes forecast.

Russell Shor Written by Russell Shor

The price of ARM Holdings shares jumped following its earnings release. For the December quarter, the company reported $824m in revenue, which crushed expectations of $726m. Adjusted EPS were 29 cents versus consensus of 25 cents.

Company forward guidance was robust with a revenue forecast for the March quarter of $850m-$900m. This is much higher than the median consensus estimates of $779m.

CEO Rene Haas said that "The AI wave drove licensing growth as these new devices require Arm's performant and power-efficient compute platform."

Arm's management highlighted the company's growing influence in both the cloud server market and the automotive sector. Specifically, they pointed to the upcoming Nvidia GH200 AI Superchip datacenter systems, emphasising the incorporation of Arm technology in these advancements. Additionally, more customers are embracing advanced chip designs based on Armv9 technology, which, in turn, promise to double the royalty rates compared to Armv8 products.

"Key players like Dell Technologies, Hewlett Packard Enterprise, Lenovo, Quanta and Supermicro are among those using the GH200 to tackle some of the world's most challenging problems."

Thge ARM share price gapped higher on market open yesterday, closing almost 50% higher on the day.

Russell Shor

Senior Market Specialist

Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.

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