Arm Shares Fall About 14% in Two Sessions Through Monday, Nov. 2

Arm Holdings shares fell about 14% over two sessions through Monday, Nov. 2, a steep move for a chip designer that has reported rising data-center royalties and demand for a new CPU.

Arm closed Monday at $196.79, down 4.46% for the day. It closed Friday, Oct. 30, at $205.97, a 9.97% decline from Thursday, Oct. 29, when shares ended at $228.77. The latest decline extended Arm's fall during Friday's broader semiconductor selloff.

Separately, Intel forecast fourth-quarter revenue of $15 billion to $16 billion on Thursday, Oct. 29, after reporting $16.5 billion in third-quarter revenue. Its Data Center and AI segment generated $7.3 billion, up 78% from a year earlier. Intel CEO Lip-Bu Tan said CPU demand remained robust, while CFO David Zinsner said the PC slowdown could continue through at least the first half of 2027.

Arm's fiscal first quarter ended June 30, a different reporting period from Intel's latest results. Arm posted revenue of $1.29 billion, up 22% year over year, and royalty revenue of $715 million, also up 22%. Data-center royalties more than doubled from a year earlier. Intel's segment revenue and Arm's data-center royalties measure different parts of their businesses.

Arm has historically licensed processor technology and collected royalties on chips that use its intellectual property. Its AGI CPU marks the company's first move into production silicon products. Arm said customer demand for the chip exceeded $2 billion across fiscal 2027 and 2028, while manufacturing capacity it had secured would support a $1 billion opportunity over those years. Those figures describe demand and capacity, not reported shipments or revenue. CEO Rene Haas said, “Demand for the Arm AGI CPU has continued to exceed our initial expectations.”

Arm is scheduled to discuss second-quarter fiscal 2027 results Wednesday, Nov. 4, at 5 p.m. ET.