Chip designer Arm’s shares plunge nearly 9% after lackluster revenue guidance

- Arm's shares dropped over 8% due to lackluster revenue guidance - Fourth-quarter revenue was $928 million, up 47% from the previous year - Licensing business grew by 60% to $414 million, driven by AI chip demand - Royalty revenues grew 37% to $514 million - Arm expects revenue for 2025 to be between $3.8 billion and $4.1 billion - Analysts were expecting revenue of $3.99 billion for the full year - Arm designs chip architectures and licenses them out to companies like Qualcomm and Nvidia - The company was founded in 1990 in England and acquired by SoftBank for $32 billion in 2016 - Nvidia tried to acquire Arm for $40 billion but was blocked by regulators - Arm's shares have more than doubled since its IPO in 2023 due to high demand for chips capable of running AI applications

Summarized top reddit comments: - Arm's shares plunged nearly 9% after lackluster revenue guidance - Market expected better guidance from Arm leading to a drop in stock value - Arm's revenue for 2025 fiscal year is expected to be between $3.8 billion and $4.1 billion - Some users plan to buy Arm's stock if it continues to drop, believing there are no competitors in the industry - Arm's growth is not coming from AI, but from more chips per product like servers and cars - Some users are concerned about the performance of their puts on Arm's stock - Arm reported fourth-quarter revenue of $928 million, marking a 47% year-over-year rise