Cambridge A-Listers Arm and AstraZeneca see stock rise in US
Record Q3 profits posted yesterday failed to prevent an Arm shares slide yesterday but the stock had recovered early afternoon today after the bulls won a head-to-head with the bears.
The indignity suffered by the Cambridge chipmaker 24 hours earlier had always looked like a case of some stakeholders seeing half a glass of Johnnie Walker but clocking an empty tumbler.
For the record Arm had delivered an above-expected Q3 revenue record of $1.24 billion but the shares still slid eight per cent as pessimists warned that any fallback in the adoption of AI could hit the future performance of the business.
For the record, Arm CEO Rene Haas said: “Arm delivered a record revenue quarter as demand for AI computing on our platform continues to accelerate. Record royalty results in the third quarter reflect the growing scale of our ecosystem, as customers design the Arm compute platform into next-generation systems across cloud, edge and physical environments to deliver high-performance, power-efficient AI. The fundamentals of the Arm business have never been stronger.”
Arm's global headquarters is at 110 Fulbourn Road, Cambridge within the Peterhouse Technology Park. The campus serves as the central hub for the company's research, engineering, and corporate operations, with expansion into the Optic building in 2025.
And Haas is optimistic for the future of the business, He expects fourth-quarter revenue of $1.47bn, above market expectations. Demand continues to be driven by chips based on its low-power architecture, particularly sought after in data centres powering artificial intelligence models. Royalty revenue, generated by sales of chips incorporating its technology, increased 27 per cent - above forecasts once more - to $737m, also above forecasts.
Haas said the growth of the AI market, notably through intelligent agents, should continue to fuel demand for Arm designs and added that the company was building towards further growth regardless of fickle market sentiment.
AstraZeneca's newly floated NYSE stock wasn't likely to see the spectacular gains witnessed on IPO yesterday but continued to rise on both sides of the Atlantic today. The opening price in New York was around $2 ahead in early trading at c. $190. While Big Apple stakeholders nibbled round the fringes, UK investors devoured the stock - pushing the London share price 120p higher by early afternoon to around £13,986.
