Arm Holdings Faces Supply Concerns, Stock Drops
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Should l Buy NVDA?
Source: Newsfilter
- Supply Constraints: Arm Holdings announced late Wednesday that it has not secured enough supplies to meet demand for its new AI chip, AGI CPU, leading to a 5.6% drop in premarket trading to $224.05, reflecting investor concerns about its supply chain capabilities.
- Demand Forecasts Lagging: While Arm indicated it could fulfill the first $1 billion in demand, CEO Rene Haas revealed that it has yet to secure supplies for the second billion dollars' worth of orders, which could hinder the company's revenue growth potential.
- Weak Smartphone Market: During the earnings call, Arm projected slightly negative growth in its smartphone segment, as the company, which powers most smartphones globally, faces challenges from memory chip shortages that have driven up electronics prices and slowed sales.
- High Expenditure Growth: Morgan Stanley analysts noted that Arm's fourth-quarter royalty revenues were weaker than expected, and the company's high operating expenditure growth trend was below expectations, suggesting a potential slowdown in spending growth for long-term needs.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 211.500
Low
200.00
Averages
264.97
High
352.00
Current: 211.500
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is an artificial intelligence (AI) infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. Its segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing and networking platforms and AI solutions and software, and automotive platforms and autonomous and electric vehicle solutions, including software. The Graphics segment includes GeForce GPUs for gaming and personal computers (PCs), and Quadro/NVIDIA RTX GPUs for enterprise workstation graphics. Its technology stack includes the foundational NVIDIA CUDA development platform that runs on all NVIDIA GPUs, as well as hundreds of domain-specific software libraries, frameworks, algorithms, software development kits (SDKs), and application programming interfaces (APIs). Its platforms address four markets, which include Data Center, Gaming, Professional Visualization, and Automotive.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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See More
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