Arm Holdings shares were down 11.7% as of 12:21 p.m. ET, even though record fiscal Q2 revenue of $1.44 billion rose 27% and beat the $1.38 billion estimate. EPS rose 33% to $0.52, above the $0.47 consensus, but royalty revenue rose only 8% to $670 million, reflecting softness in smartphone memory prices that could persist. Barclays cut its price target from $360 to $325, while Goldman Sachs reiterated its sell rating and $160 target against a price near $165. Third-quarter revenue guidance of $1.54 billion (+/- $50 million) slightly exceeds the $1.53 billion consensus, though investors may have expected stronger growth. The article says much of the selling reflects a broad reset in chip stocks such as Nvidia, Micron and Qualcomm.
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