Latest news with #Arm
Economic Times
2 hours ago
- Business
- Economic Times
Arm considers developing own chips; stock falls as outlook disappoints
Getty Images Chip architecture provider Arm Holdings' CEO Rene Haas Chip architecture provider Arm Holdings is investing in developing its own chips, CEO Rene Haas said on Wednesday, marking a major shift to its model of licensing its blueprints to other companies. Arm also issued quarterly forecasts that failed to satisfy investors who have sent the company's stock surging in recent months on expectations it will become a key player in artificial intelligence. Arm shares slumped around 8% in extended trading on Wednesday. The plan to invest more heavily in developing its own chips marks a departure from Arm's long-time business of supplying intellectual property to companies ranging from Nvidia to which already design their own chips. Finished chips are the "physical embodiment" of a product Arm already sells called Compute Sub Systems (CSS), Haas said. "We are consciously deciding to invest more heavily - is the possibility of going beyond (designs) and building something, building chiplets or even possible solutions," Haas said in an interview with Reuters. Chiplets are smaller, modular versions of a larger chip. Chiplets perform specific functions, and designers will stitch several together to form a complete processor. To build up the necessary staff to make chiplets and other finished chips, Arm has been recruiting from its customers and competing against them for deals, Reuters has reported. Haas declined to provide a timeframe in which the company's investments in the new strategy would translate into profit, or give specifics about potential new products that are part of the initiative. But, Haas said that Arm would look at chiplets, "a physical chip, a board, a system, all of the above." In recent months, chip companies have begun to focus more effort on building the necessary server hardware, or server rack, around a chip. Nvidia sells its NV72 rack systems, and Advanced Micro Devices acquired server builder ZT Systems to build system-level products. This expansion of its business could put Arm in competition with some of its customers, who design finished chips and chiplets for their own products. Arm has surged around 150% since its stock market debut in 2023, and its shares recently traded at over 80 times expected earnings, far higher than the PE valuations of Nvidia, Advanced Micro and other chipmakers focused on AI. Disappointing forecast The company forecast second-quarter profit slightly below estimates on Wednesday, as global trade tensions threaten to hit demand for Arm in its mainstay smartphone market. Arm's chip technology powers nearly every smartphone in the world, and its tame forecast underscores uncertainty faced by global manufacturers and their suppliers resulting from U.S. President Donald Trump's tariff policies. UK-based Arm forecast adjusted per-share profit between 29 cents and 37 cents for the fiscal second quarter, the midpoint of which is below analysts' average estimate of 36 cents per share, according to LSEG data. The forecast disappointed investors, according to Summit Insights analyst Kinngai Chan. "Results and outlook were light and below expectations," he said. The company generates revenue through licensing deals for its intellectual property and a royalty charged for each chip sold that uses its technology. Smartphones remain Arm's biggest stronghold. Morningstar analysts expect Arm to continue as the dominant architecture provider in smartphone processors, where it has a 99% market share. Global trade tensions, however, cloud the outlook for the market. Uncertainty fuelled by tariff volatility and ongoing macroeconomic challenges has tapered end-market demand, with global smartphone shipments increasing just 1% in the April-to-June period, according to International Data Corporation. Arm expects current-quarter revenue between $1.01 billion and $1.11 billion, in line with estimates of $1.06 billion. The company reported first-quarter sales of $1.05 billion, coming in just shy of estimates of $1.06 billion. Adjusted profit of 35 cents per share was in line with estimates. "Smartphone royalties (call it "Android on a low-carb diet") remain soft, especially in China, but cloud-server and AI accelerator design wins keep the (next generation Arm tech) royalty treadmill humming," Running Point Capital chief investment officer Michael Schulman said. Elevate your knowledge and leadership skills at a cost cheaper than your daily tea. Zomato delivered, but did the other listed unicorns? As rates slide, who will grab the savings pie? 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Time of India
3 hours ago
- Business
- Time of India
Arm considers developing own chips; stock falls as outlook disappoints
Academy Empower your mind, elevate your skills Chip architecture provider Arm Holdings is investing in developing its own chips, CEO Rene Haas said on Wednesday, marking a major shift to its model of licensing its blueprints to other also issued quarterly forecasts that failed to satisfy investors who have sent the company's stock surging in recent months on expectations it will become a key player in artificial intelligence. Arm shares slumped around 8% in extended trading on plan to invest more heavily in developing its own chips marks a departure from Arm's long-time business of supplying intellectual property to companies ranging from Nvidia to which already design their own chips. Finished chips are the "physical embodiment" of a product Arm already sells called Compute Sub Systems (CSS), Haas said."We are consciously deciding to invest more heavily - is the possibility of going beyond (designs) and building something, building chiplets or even possible solutions," Haas said in an interview with are smaller, modular versions of a larger chip. Chiplets perform specific functions, and designers will stitch several together to form a complete processor. To build up the necessary staff to make chiplets and other finished chips, Arm has been recruiting from its customers and competing against them for deals, Reuters has declined to provide a timeframe in which the company's investments in the new strategy would translate into profit, or give specifics about potential new products that are part of the initiative. But, Haas said that Arm would look at chiplets, "a physical chip, a board, a system, all of the above."In recent months, chip companies have begun to focus more effort on building the necessary server hardware, or server rack, around a chip. Nvidia sells its NV72 rack systems, and Advanced Micro Devices acquired server builder ZT Systems to build system-level products. This expansion of its business could put Arm in competition with some of its customers, who design finished chips and chiplets for their own has surged around 150% since its stock market debut in 2023, and its shares recently traded at over 80 times expected earnings, far higher than the PE valuations of Nvidia, Advanced Micro and other chipmakers focused on company forecast second-quarter profit slightly below estimates on Wednesday, as global trade tensions threaten to hit demand for Arm in its mainstay smartphone market Arm's chip technology powers nearly every smartphone in the world, and its tame forecast underscores uncertainty faced by global manufacturers and their suppliers resulting from U.S. President Donald Trump's tariff Arm forecast adjusted per-share profit between 29 cents and 37 cents for the fiscal second quarter, the midpoint of which is below analysts' average estimate of 36 cents per share, according to LSEG forecast disappointed investors, according to Summit Insights analyst Kinngai Chan."Results and outlook were light and below expectations," he company generates revenue through licensing deals for its intellectual property and a royalty charged for each chip sold that uses its remain Arm's biggest stronghold. Morningstar analysts expect Arm to continue as the dominant architecture provider in smartphone processors, where it has a 99% market trade tensions, however, cloud the outlook for the fuelled by tariff volatility and ongoing macroeconomic challenges has tapered end-market demand, with global smartphone shipments increasing just 1% in the April-to-June period, according to International Data expects current-quarter revenue between $1.01 billion and $1.11 billion, in line with estimates of $1.06 company reported first-quarter sales of $1.05 billion, coming in just shy of estimates of $1.06 billion. Adjusted profit of 35 cents per share was in line with estimates."Smartphone royalties (call it "Android on a low-carb diet") remain soft, especially in China, but cloud-server and AI accelerator design wins keep the (next generation Arm tech) royalty treadmill humming," Running Point Capital chief investment officer Michael Schulman said.
The Verge
17 hours ago
- The Verge
Adobe releases Windows on Arm versions of Premiere Pro and After Effects
Adobe is finally releasing Windows on Arm versions of Premiere Pro, After Effects, Audition, and Media Encoder this week. All four apps are available as public beta versions, but they do lack some features or have some known issues compared to the versions available for Intel-powered systems. The native ARM64 version of Premiere Pro won't currently include support for third-party extensions, raw video files like ProRes, or the hardware-accelerated playback and export of H.264 and HEVC in MP4. Those are some big missing features that Adobe is looking to make available in a future release, but the company won't deliver the Loudness Radar effect, export to Wraptor DCP, import & export of GoPro CineForm content, or the export to the P2 Movie format in beta or final versions of Premiere Pro for Windows on Arm. There are some known issues with Adobe After Effects for Windows on Arm, too. It also lacks ProRes support, alongside the inability to import or export ARRIRAW, SWF, GoPro CinePro, JPEG20000 in MXF, and WMV. Currently, you can't import MotionJPEG and MKV in the beta version of After Effects, and there's also no hardware-accelerated playback and export of H.264 and HEVC in MP4. Adobe notes that third-party plug-ins for After Effects will have to be updated for this Windows on Arm version, so there's no support for these just yet. There are similar features missing from the native Windows on Arm version of Audition and Media Encoder, which are both also available in beta this week. Adobe first released an Arm beta version of Photoshop for Windows in late 2020, but the company has taken far longer to get Premiere Pro and After Effects recompiled natively for ARM64. Owners of Qualcomm-powered Copilot Plus PCs have had to use the emulated version of Premiere Pro over the past year, which didn't have enough performance for more demanding video editing tasks. Posts from this author will be added to your daily email digest and your homepage feed. See All by Tom Warren Posts from this topic will be added to your daily email digest and your homepage feed. See All Adobe Posts from this topic will be added to your daily email digest and your homepage feed. See All Creators Posts from this topic will be added to your daily email digest and your homepage feed. See All Microsoft Posts from this topic will be added to your daily email digest and your homepage feed. See All News Posts from this topic will be added to your daily email digest and your homepage feed. See All Tech Posts from this topic will be added to your daily email digest and your homepage feed. See All Windows
Yahoo
2 days ago
- Business
- Yahoo
Arm Q1 2026 Earnings Preview: Royalty Ramp in Focus
Arm will release fiscal first-quarter results after the bell on July 30, 2025. Consensus targets call for 12% revenue growth but a 13% drop in EPS versus Q1 2025. Shares are up 32% YTD, a move powered by AI and IoT demand. Royalty backlog and AI demand are the key watch-points. Remaining performance obligations were $2.23 billion at the end of Q4 FY25, down 10% YoY as prior deals converted to revenue. Management has called the drop timing-related and says growing Armv9 use in cloud and automotive will lift royalties through FY 2026. An update on large AI-accelerator licenses now in negotiation could refill RPO and restore confidence in the full-year sales range. Investors also want proof that a richer royalty mix can keep operating margin in the mid-40s while R&D rises to defend IP. Arm trades at 91 forward P/E and 35 forward P/S. A clean beat with upbeat AI and IoT commentary could keep that premium intact, but a renewed guide cut or slower royalty run-rate might cap any post-print upside. This article first appeared on GuruFocus.
The Star
2 days ago
- Business
- The Star
Selangor invests in chip design capacity building
PETALING JAYA: The Selangor state government is committing between RM5mil and RM10mil annually over the next 10 years to develop the front-end semiconductor value chain, which involves chip designing. Selangor Mentri Besar Datuk Seri Amirudin Shari said the state's commitment also depends on the commitment from the federal government. He noted that the federal government, through the Economy Ministry, has increased its support from RM60mil to RM100mil. 'As of now, we are committing almost RM5mil to RM10mil a year. However, it depends on the commitment from the federal government. It is a one-to-one investment,' he told the media on the sidelines of the launch of the first-ever Arm-led training programme in Malaysia yesterday. This initiative is a collaborative effort between the Advanced Semiconductor Academy of Malaysia (Asem) and Arm. Hosted under the Malaysia IC Design Park initiative, the Arm On-Demand Training Programme commenced with an inaugural cohort of 400 engineers. The programme is also in line with the billion-ringgit deal that Malaysia secured with Arm Holdings PLC in March this year. Under the deal, Arm will provide Putrajaya with intellectual property (IP) licences and compute subsystems (CSS) for US$250mil (RM1.11bil), to be paid over 10 years. The United Kingdom-based firm will collect royalties on chips sold. Further, the Arm-Malaysia partnership earlier this year also entails the training of 10,000 local integrated circuit (IC) design engineers by Arm. Amirudin said the target is to train around 1,000 engineers a year, beginning with the first cohort of 400 engineers already enrolled in the programme. 'If we have two or three cohorts, we can reach our target of 1,000 each year,' he said. Amirudin said the Arm On-Demand Programme will move Selangor and Malaysia from completely relying on foreign direct investment towards building leaders to form startups which can later go on to be Selangor and Malaysia's leading companies to invest and export to other countries. 'I am thrilled that Arm has decided to commit the next decade of its technical and engineering know-how to hire Selangorians through a partnership with Asem, building on the success of the IC Design Park in Puchong which has over 400 engineers working with some of the leading companies in Malaysia and beyond,' he said. Rakuten Trade head of equity sales Vincent Lau said the amount allocated by the Selangor state government is a good starting point, especially in terms of talent development. 'For training purposes, the amount committed is sufficient – they have already started with a few cohorts, and it is clear the government is serious, especially with the Arm deal in place. 'If more is needed later on, I believe they will adjust accordingly,' he told StarBiz. Lau said it may not be sufficient if the funding is meant to cover the broader goal of developing front-end semiconductor capabilities, which typically require significant capital investment and long-term infrastructure planning. 'However, this is still an important first step. At least now we are on the right path,' he added. Tradeview Capital fund manager Neoh Jia Man said the RM5mil to RM10mil a year is 'definitely not enough' and that it is 'a drop in the ocean' in driving development in the local front-end semiconductor space. 'Not only is it a very specialised and capital-intensive segment of the semiconductor value chain, but Malaysia is also facing fierce competition from other countries, who are putting hundreds of millions of dollars into developing their own front-end IC design industries. 'The good thing is that the federal government is also stepping in with additional funding, and that collective effort could help alleviate some of the talent shortages – particularly in the front-end of the value chain,' he said. On whether the Arm On-Demand training programme can help to plug the talent gap in the semiconductor industry, Neoh said, 'The National Semiconductor Strategy targets 60,000 engineers in six years – about 10,000 annually. 'If 30% to 40% of those are meant for front-end roles, that is about 3,000 to 4,000 engineers a year. 'The Arm-led programme aims to train 10,000 engineers over 10 years, or about 1,000 a year. 'Hence, that covers roughly a third of what is needed for front-end IC design annually – which is actually a significant portion,' he said. To this end, Lau noted Arm's training programme will 'definitely help to plug the talent gap' in the sector. 'Even if we manage to fill 50% to 60% of the gap, it is already an improvement. Any increase in local talent supply is good, especially in light of the short supply of engineers,' he said.
