Arm forecast beats estimates as AI spurs chip upgrades, shares surge

Arm Holdings surged more than 30% on Wednesday after the British tech company forecast fiscal fourth-quarter sales and adjusted profit above Wall Street expectations as customers aim to design new chips for artificial intelligence work, generating higher royalties.

Arm’s forecast ranges for its fourth quarter had midpoints of $875 million for sales and 30 cents per share for adjusted earnings, above estimates of $780.3 million and 21 cents per share, according to LSEG data.