Shares of Arm plunge 8% after licensing revenue misses estimates, Qualcomm outlook adds pressure

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Shares of UK-based semiconductor designer Arm Holdings

plunged 7.48% in after-hours trading Wednesday after the company’s licensing revenue missed Wall Street estimates.

Arm’s fiscal third-quarter licensing revenue rose 25% from a year earlier to $505 million, but came in 2.9% below the $519.9 million expected by analysts surveyed by FactSet.

“ARM is down -8% in late trading after its guidance only slightly beat – not helped by the negative read through from Qualcomm numbers after-hours given ARM chip designs are heavily used in smartphones,” said Andrew Jackson of Ortus Advisors.