Arm stock falls 12% as weak smartphone royalties offset AI data centre growth

Impact · against what's priced in

The smartphone royalty miss is a negative catalyst for ARM as it undermines the stability of the core royalty engine, though the reinforced AGI CPU pipeline provides a long-term valuation floor. For AAPL, the mention of memory-chip supply constraints is a non-event as the market has already factored in component cost pressures.

ARM−0.40

Challenges what's priced in

The price assumes

The current 22.8% revenue growth and 92.5% gross margin on the existing IP-licensing business.