US Markets
Home›US Markets›Equities›Arm shares drop about a third from 52-week peak as gro…
Arm shares drop about a third from 52-week peak as growth fears rise
Arm said fiscal 2027 first-quarter revenue rose 22% year over year to $1.29 billion, with royalty revenue up 22% to a record $715 million, driven in part by AI-related demand.
Arm Holdings shares have pulled back sharply after a strong rally, falling 36.3% from their 52-week high as investors took profit and weighed concerns about slower smartphone demand, according to Yahoo Finance. The decline is also tied to worries that a key end market for Arm may be weakening.
The report points to Arm’s fiscal 2027 start as a counterbalance to the stock weakness. In the first quarter, Arm revenue increased 22% year over year to $1.29 billion, while royalty revenue rose 22% to a record $715 million, led by AI-related demand.
Arm’s growth is supported by expanding use of its chip architecture across data centers, automotive applications, edge devices, and cloud infrastructure, Yahoo Finance writes. Cloud AI remained the largest contributor, and data-center royalty revenue more than doubled as hyperscale cloud providers expanded deployments of Arm-based processors.
The article also highlights adoption of networking chips such as DPUs and SmartNICs used in AI infrastructure. It notes that smartphone shipments face pressure from weaker consumer demand and higher memory prices, but that Arm has offset this with higher-value technologies, including rising use of its Armv9 architecture and compute subsystems across mobile and other connected devices.