Introduces Arm Holdings' strong earnings performance with 17% weekly stock gain, 27% royalty revenue growth, and 25% license revenue growth.
Marley Kaden
Jason Child
Attributes record quarter to hyperscaler AI investment cycle and CapEx spending, positioning Arm as beneficiary of AI infrastructure buildout.
Asks about market fixation on licensing revenue miss despite solid overall numbers.
Sam Vadas
Jason Child
Explains licensing as leading indicator with lumpy multi-hundred million dollar deals, guides to $300M license revenue increase next quarter.
Notes 100% YoY data center royalty growth and asks about hyperscaler vs emerging AI deployment contributions.
Marley Kaden
Jason Child
States Arm has extremely high market share in general purpose compute used by all hyperscalers for various workloads including AI.
Asks about data center business potentially leapfrogging mobile in coming years.
Sam Vadas
Jason Child
Predicts shift toward CPU workloads if Agentic AI grows in 2026, benefiting Arm as CPU of choice for hyperscalers.
Asks about transition from smartphones to data centers and CPU role in AI stack.
Marley Kaden
Jason Child
Mobile business remains strong with near 100% share; memory shortage affects lower-end market more; Arm positioned for both data center and edge AI growth.
Asks about industry constraints beyond memory, including CapEx, energy, and power risks highlighted by Jensen Huang.
Sam Vadas
Jason Child
Identifies memory, silicon/wafer capacity, and power as key constraints; expects continued market volatility as constraints impact different companies.