Arm reports Q2 EPS 30c, consensus 26c

Reports Q2 revenue $844M, consensus $808.4M. The company states: “Increasing chip complexity is driving royalty revenue growth. AI-enabled devices need significantly increased compute performance yet also require energy efficiency and rapid time-to-market. Arm (ARM) compute platforms enable more complex AI chips developed on faster cadences across smartphones, cloud servers, edge IoT, automotive, and networking devices. Arm’s leading share across these end markets makes us uniquely positioned to benefit from the proliferation of AI from the cloud to the edge. AI everywhere from the cloud to the edge is creating demand for more energy-efficient compute. New AI hardware and the emergence of smaller, lighter language models are unlocking edge AI use-cases in smartphones, PCs, consumer electronics, automotive and industrial devices. Arm’s ubiquitous position as the compute platform across all of these end markets enables us to address these emerging opportunities.”