Nasdaq shares climb as Arm posts record Q3 results and soaring chip demand

CEO Rene Haas said: “Arm delivered record third quarter revenue driven by continued strong adoption of Armv9 and CSS compute platforms. With our high-performance, energy efficient, flexible technology, Arm is a key enabler in advancing AI innovation and transforming the user experience, from the edge to the cloud.”

Arm beat estimated earnings by 15 per cent with EPS of $0.39 against an estimate of $0.34 and revenue was up $159m on the same period of 2024.

Total revenue was up 19 per cent year-on-year at $983m and Arm upped its engineering headcount by 19 per cent.

More than 310 billion Arm-based chips have now been shipped since launch in 1990 and the company has created a base for the largest ecosystem in the semiconductor industry. To put it mildly, AI on Arm is going pretty much everywhere.

Haas said AI demand from the edge to the cloud continued to drive strong momentum for the Arm ecosystem as it guaranteed more energy efficient compute.

Increasing chip complexity and demand for custom silicon were driving royalty revenue growth, he added. Arm compute platforms enabled more complex AI chips to be developed on faster cadences across smartphones, cloud servers, edge IoT, automotive and networking devices and companies are building sophisticated edge devices based on Arm CPU, GPU and NPU technologies, Haas added.

Rising chip complexity was also leading partners to customise silicon to their specific workload requirements on the latest Armv9 and CSS technologies. AWS, Google, Microsoft and others are optimising Arm-based chips for the data centre to run AI and general purpose compute workloads.