Arm Holdings shares fell about 5 percent in the regular session on Wednesday and were about 4 percent lower after hours, even though the chip designer beat its fiscal second-quarter forecasts. Adjusted earnings per share came in at 0.52 dollars against a forecast of 0.47 dollars, and revenue reached 1.44 billion dollars against an estimate of about 1.38 billion.
The stock’s reaction reflected more than the headline numbers.
AI infrastructure stocks slide
The broader US market moved in the opposite direction.
Nvidia dropped about 3 percent, and Micron and Marvell each fell about 7 percent. Investors appeared concerned that tighter restrictions could slow the expansion of data centres.
Wider backdrop
The Wall Street rally was linked by market commentary to Democrats winning both chambers of Congress, along with lower Treasury yields, a weaker dollar and falling oil prices.
SoftBank Group, which holds about 90 percent of Arm, has been under pressure in Tokyo. Its shares fell about 5 percent in May, and the company overtook Toyota as Japan’s most valuable company in June.
Traders in Tokyo were also awaiting the minutes of the Bank of Japan’s September meeting, due before the cash open.
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