Darth Vader's Take on Arm's Chip Guidance Disappointment

The Dark Side of Revenue Guidance

Ah Arm your revenue guidance has disappointed investors like a malfunctioning hyperdrive. A 47% rise in fourth quarter revenue driven by AI demand was impressive but your 2025 fiscal year projections didn't quite hit the target. The Force is not strong with this one.

Licensing Business: The Force Is Strong

Arm's licensing business grew by 60% to $414 million in the quarter. High value license agreements for AI chips were like finding a lightsaber in a sandpit. Keep harnessing the power of the Force Arm.

Royalty Revenues: May the Profits Be With You

Arm's royalty revenues increased by 37% to $514 million thanks to the growing popularity of Armv9 based chips. The penetration of these chips is spreading faster than a rebellion in the galaxy. Royalties are the path to profitability Arm.

Analyst Insights: Wise Words from the Galaxy

Citi analysts remain optimistic about Arm's licensing business and future royalty growth. They believe that the combination of AI needs and higher value solutions is a positive sign for the future. Embrace the Jedi wisdom Arm.

The Buy Rating: A New Hope

"Licensing upside today leads to royalty growth tomorrow," say the analysts. Despite the slight dip in full year guidance the strength of Arm's licensing business is the beacon of hope for investors. Stay true to the Force Arm.

May the Chips Be Ever In Your Favor

Arm's journey in the chip galaxy continues. While revenue guidance might have hit a bump in the asteroid field the Force of AI and licensing remains strong. Stay focused Arm and may the chips be ever in your favor.