Arm stock tumbles on chip designer's muted profit forecast

In this artiM your favorite stocksCREATE FREE ACCOUNTThe logo of semiconductor design firm Arm on a chip.Jakub Porzycki | Nurphoto | Getty Imagess of Arm Holdings plunged 12% on Thursday after the chip designer offered muted guidance for earnings.Second-quarter adjusted earnings will be between 29 cents and 37 cents per , Arm said late Wednesday

Arm has made its name selling the architecture behind the chips powering devices made by the s of Microsoft and Amazon."We're looking now at the viability of moving beyond the current platform to additional subsystems, chiplets or possibly full solutions," Haas said.Read more CNBC newsMeta's big AI spending blitz will continue into 2026Microsoft stock pops on earnings beat as Azure annual revenue tops $75 billionEBay stock surges on earnings beat, rosy guidanceMeta's Reality Labs posts $4.53 billion loss in second quarterThe disclosure left investors "with more questions than answers," Wells Fargo analysts wrote in a Thursday re note.By its own chips, the company's cost structure will ly undergo a "major change," Needham analysts wrote."While we view ARM's transition from selling cess core IP to selling CSS was largely successful, as evidenced in above-market royalty revenue growth, the next transition appears to be a much bigger leap, which will ly come with a bigger price," the analysts added.For the fiscal first-quarter, the company posted adjusted earnings per of 35 cents on revenue of $1.05 billion