1 Key Metric To Watch That Could Send Arm Stock Soaring
Arm delivered solid results, but all eyes are on its upcoming AGI CPU chip.
Overview
Arm Holdings (NASDAQ: ARM) reported fiscal first-quarter earnings on Wednesday, and the results were solid.
Revenue jumped 22% to $1.29 billion, ahead of the consensus at $1.27 billion, driven by balanced growth in license and royalty revenue. On the bottom line, adjusted earnings per share improved from $0.35 to $0.45, ahead of the consensus at $0.40.
Details
Arm continued to see strong growth in the data center segment, where royalty revenue more than doubled year-over-year. Arm-based chips have also surpassed the x86 platform used by Intel and AMD, and Arm's lead is expected to accelerate as the data center segment grows. The company has forged close relationships with major hyperscalers such as Alphabet, Microsoft, and Amazon, as well as Nvidia, all of which license its CPU technology. Arm is known for its power-efficient CPUs, which give it an advantage in the data center, which consumes massive amounts of energy.
Source
Originally published at www.fool.com.