Arm Holdings beat quarterly revenue and earnings estimates and issued a stronger-than-expected revenue forecast, supported by robust demand for AI infrastructure and data centre chips. However, the stock fell nearly 7% in after-hours trading after the company warned of softer smartphone royalty growth, overshadowing optimism around its expanding AI business.

Arm Holdings stock fell over 9% as AI trade jitters hit tech shares. Get key insights on technical levels, earnings estimates, and analyst targets ahead of results.

Despite chip designer's bullish outlook, total revenue for Q1 2027 was down on the last quarter