US Stock Market Move | Self-developed chips encountered production bottleneck, Arm Holdings (ARM.US) fell nearly 8% after earnings.

On Thursday, Arm Holdings (ARM.US) fell nearly 8% after earnings, now trading at $219.85. In terms of news, Arm Holdings released its fiscal fourth-quarter report for the period ending March 2026 after the market closed on Wednesday. The company's quarterly revenue increased by 20% year-on-year to $1.49 billion, higher than the market's expected $1.47 billion. Net profit reached $641 million, with adjusted earnings per share at 60 cents, also exceeding expectations. Looking ahead to the next quarter, the company forecasts revenue of around $1.26 billion for the first quarter, slightly above analysts' average expectation of $1.25 billion. Adjusted earnings per share are expected to be 40 cents, compared to the market's general expectation of 36 cents. During the analyst call, company executives mentioned that they have not yet secured enough supply chain capacity to meet the demand for a new chip. Analysts also asked probing questions about the costs of its self-developed chip business. The fluctuations in market sentiment reflect investors' complex assessments of the subdued smartphone market, lower-than-expected royalty income, and risks in the self-developed chip supply chain.