Arm forecasts higher-than-expected revenue on surging AI data center demand

Arm Holdings forecast first-quarter revenue above Wall Street expectations on Wednesday, benefiting from higher adoption of its chip technology as tech companies spend heavily on artificial intelligence compute.

Arm shares jumped 12% in after-hours trading, but reversed course to drop 5.49% after executives told analysts on a conference call that they have not yet secured supplies to meet the demand for a new chip ‌and after analysts ⁠probed about ⁠the costs of getting into the business of making its own chips.