Arm Shares Fall 5% as Licensing Revenue Rises 50% to $773 Million

Arm shares lost 5% in premarket trading Thursday, Nov. 5, as investors assessed fiscal second-quarter results and guidance from the British semiconductor company. Arm generated $773 million in licensing revenue, 50% more than a year earlier. Market analysts called the quarter solid, while one judged that it offered limited new details. Arm expects royalties tied to data-center use to grow at a triple-digit rate over the next few years. Separately, analysts said cloud AI royalties were more than offsetting ongoing weakness in smartphone royalties.

Source: TokenPost