November 7, 2025

Get ready for some exciting news from chip superstar Arm Holdings! The UK-based chip technology whiz just gave a stunning forecast for its third fiscal quarter. Arm expects to rake in a revenue of $1.23 billion right at the middle of its guidance range. Guess what? That's way above the average analyst estimates of $1.1 billion, according to LSEG data. The chip maker’s momentum is real — its second-quarter revenue rose a whopping 34% to $1.14 billion. This crushed analyst expectations yet again, which were around $1.06 billion. And more good news: Arm reported earnings of 39 cents per share for the quarter, beating the anticipated 33 cents. Why is Arm soaring? CEO Rene Haas spilled the beans in a Reuters interview. He explained, “When we think about what's going on with Arm in the data center, we then kind of go back to all of this demand for AI compute - the bottleneck is power.” He added, “That's a good thing for us.” In simple words, the huge rush in artificial intelligence computing needs chips that save power, and Arm's designs fit the bill perfectly! Arm earns from licensing its semiconductor designs and charging royalties for each chip sold using its tech. Its chips are famous for using less energy than rivals like Intel and AMD’s x86 designs. The company’s royalty revenue shot up 21% to $620 million in the second quarter. Licensing revenue? That’s exploded 56% to $515 million — thanks to some big-ticket contracts hitting just at the right time. Phones, data centers, cars — Arm’s technology is everywhere. It powers almost every smartphone on the planet! And it’s making strides in the booming data center market too. Research by TD Cowen reveals that chips based on Arm’s designs generate a whopping $200 billion every year for chipmakers worldwide. What's next for Arm? The company revealed plans to shift gears — it wants to build its own full chips, not just license designs. A bold move! CEO Haas calls these chips the "physical embodiment" of its Compute Sub Systems (CSS) products. To pull this off, Arm is growing its team of experts to develop these new chips and components. This new chapter could change the game for Arm, blending its famous smart designs with fully built chips. Readers, keep your eyes peeled — Arm is not just designing the future, it’s building it!

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Tags: Arm holdings, Chip Technology, Ai Computing, Revenue growth, Semiconductor Licensing, Data Center Chips,