Arm Holdings is trading at $266.08 (-4.0%) after investors reacted to a disappointing forward profit outlook and concerns regarding manufacturing capacity for its new AI CPUs.

  • While the company beat current-quarter estimates, guidance fell short of expectations as management works to secure more supply for its latest technology.
  • CEO Rene Haas cautioned that growth in the smartphone unit may turn negative, adding pressure to a stock already susceptible to profit-taking following a significant rally.