🔴 Arm Holdings is trading 3.9% down today on soft profit guidance and AI chip supply concerns

Arm Holdings is trading 3.9% down at $266.32 in pre-market action as soft forward guidance and supply chain hurdles weigh on investor sentiment.

• While the company beat revenue and EPS estimates, a weaker-than-expected forward EPS outlook prompted profit-taking following a period of elevated valuation.
• Management highlighted supply constraints for its new AI data-center CPU, raising concerns regarding execution and the ability to meet surging demand.
• Despite the quarterly beat, lingering worries over the pace of AI-related growth and chip availability overshadowed the positive historical results.