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Arm shares soar more than 40% as AI demand boosts growth prospects

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Arm shares soar more than 40% as AI demand boosts growth prospects

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UK chip designer Arm said it was seeing higher royalty and licensing revenue amid strong AI demand as it lifted its outlook for the year, sending shares rocketing more than 45 per cent higher early trading on Thursday.

Arm chief executive Rene Haas said the company had benefited from the “profound opportunity” brought by the demand for new artificial intelligence applications being deployed by big tech companies.

The strong results for the company — which offers the foundational architecture behind chips built by big tech companies — led it to double down on its claim that a revolutionary shift in demand for AI computing power will drive the next phase of its growth.

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Ahead of the earnings release on Wednesday, Bank of America analysts reiterated their “buy” rating on Arm stock, saying they expected the company’s growth narrative to be supported by increased royalty fees from Arm’s latest design architecture powering AI.

The company’s revenue in the three months to the end of December was $824mn, up 14 per cent year on year, above consensus estimates of $762.99mn, according to S&P Capital IQ. Arm also revised higher its full-year revenue guidance from a range of $2.96bn-$3.1bn to $3.15bn-$3.2bn.

In a letter to shareholders on Wednesday, Arm said that royalty revenue from smartphones had also improved, thanks to a recovery in device sales.

Adjusted earnings per share were $0.29, and it lifted its full-year guidance from a range of $1.00-$1.10 to $1.20-$1.24.

It is Arm’s second quarterly earnings report since going public in September. Its first report had left Wall Street underwhelmed, as it paid out more than $500mn in remuneration costs following the listing in New York, which required it to settle shares previously granted to employees.

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Japan’s SoftBank holds more than 90 per cent of shares in Arm, after acquiring the business for $32bn in 2016. The UK had lobbied hard for Cambridge-based Arm to list in London, but SoftBank opted instead for New York, believing it had a better chance of recouping its investment with Arm trading alongside high-valued US tech companies.

Arm shares hit a record high of $112 on Thursday morning in New York, more than double the $51 price the company offered when it first listed. SoftBank shares climbed nearly 10 per cent on Thursday morning in Tokyo on the back of Arm’s results and ahead of the group’s own quarterly earnings presentation later in the day, but the tech conglomerate’s stock ultimately closed 0.4 per cent lower.

On an earnings call following the results announcement, Haas said that Arm was “the most fundamental, pervasive compute platform in the history of digital design”, with demand for AI applications “driving the need for a lot of different products”.

Royalties from Arm’s newest Armv9 chip design architecture, which is embedded in devices powering AI applications, now make up 15 per cent of the company’s overall royalty revenues, up from 10 per cent during the last quarter. It is bringing twice the royalty rate of the previous Armv8 designs, Haas said.

Processor chips in data centres that train large language models, including Nvidia’s Grace Hopper, Microsoft’s Cobalt and Amazon’s Graviton, are all based on Arm’s V9 architecture. Similarly, Arm’s V9 designs were “in all of the premium smartphones” released by the likes of Apple, Samsung and Google, Haas said.

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The company also experienced strong growth in China, Arm chief financial officer Jason Child said. Arm China now accounts for 25 per cent of total revenue, up from 20 per cent for the prior quarter.

Licensing revenue growth also increased, thanks in part to an uptick in demand for its computing platform, Arm Total Access, Haas said.

Arm’s upbeat results contrast with several other chip companies that have reported this year, with Intel, AMD and Texas Instruments all offering more tepid outlooks amid concerns about broader sluggishness in the semiconductor sector.

Qualcomm, however, also beat revenue expectations last week, which it credited to demand for AI-focused chips.

Video: AI: a blessing or curse for humanity? | FT Tech
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Rep. Tom Kean returns to Congress, says depression is why he went missing for months

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Rep. Tom Kean returns to Congress, says depression is why he went missing for months

Rep. Thomas Kean Jr., R-N.J., arrives at the U.S. Capitol with his wife Rhonda Kean on June 30.

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New Jersey Republican Thomas Kean Jr. said it was struggles with depression that kept him away from Congress for nearly four months with no explanation to his constituents.

Kean last voted on March 5th, missing numerous votes and other appearances on Capitol Hill since. In April, House Speaker Mike Johnson told reporters he had spoken to Kean and that he was dealing with an undisclosed medical issue. Kean was not spotted until recently at his New Jersey home.

Speaking from the House floor on Tuesday, the second term lawmaker said he had checked into a hospital for testing several months ago after health concerns, and was subsequently diagnosed with depression.

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“Talking about myself has never come naturally,” Kean said. “But I believe that I owe an explanation to the people of New Jersey’s seventh district, to my colleagues in this chamber and to the American people for my absence.”

Kean said he originally did not think his diagnosis would result in a long-term absence. Doctors recommended he remain in the hospital to address the illness, and it was his fastest route to recovery, he said.

“It is physical. It is emotional,” he said. “And until you experience it yourself, it is difficult to fully understand how powerful this illness could be.”

Kean said he miscalculated how long he would be away, estimating it would be a matter of weeks. However, he said like the roughly 48 million Americans who have battled the illness, he learned there is no timeline for recovery.

“I am grateful that I accepted help,” Kean said. “Today I stand before you healthier, stronger and excited to return to the work that I love.”

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Kean’s absence proved a struggle for House Republicans, who contend with a razor thin majority to pass party priorities. For weeks, Kean and his office declined to share additional details on why he was away, feeding rumors and speculation and raising interest in a member known for his privacy.

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Michigan governor threatens to pull troops from D.C. if used for Trump task force

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Michigan governor threatens to pull troops from D.C. if used for Trump task force

Members of the National Guard stand in front of a large image of U.S. President Donald Trump that hangs from the the Robert F. Kennedy Department of Justice Building on May 18, 2026 in Washington, D.C.

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WASHINGTON, D.C. — In a strongly worded letter to the head of Michigan’s National Guard, Gov. Gretchen Whitmer reiterated troops from her state are only to be used for operations surrounding America 250 celebrations in Washington, D.C., and not for President Trump’s long-running — and controversial — joint task force to fight crime. She said that she would pull her troops from the city if that is not the case, in the letter obtained by NPR.

“Please take all necessary measures to ensure the Michigan National Guard is only supporting the narrow and limited America 250 Mission and is in no way supporting the D.C. Safe and Beautiful Mission,” wrote Gov. Whitmer, referencing the official name for the federal task force.

Trump deployed hundreds of troops to Washington, D.C., in August of 2025, in what experts said was a stunning departure from governing norms. He said he did so to address rampant crime, despite declining crime rates at the time. The number of troops in the city has increased over time to more than 4,800 from Washington, D.C. and almost two dozen states, which until recently were exclusively Republican-led.

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Michigan — which has 161 guard members currently in the city — is one of four Democratic-led states that sent members of their National Guard to D.C. in recent weeks, ahead of an influx of tourists for America 250 celebrations. North Carolina and Kentucky each sent one member of their guard, while Minnesota sent more than a hundred last week.

Kentucky confirmed to NPR Monday that it had recalled its one guard member over the weekend, after that member was “diverted to the task force by the federal government without the knowledge or consent of Gov. Beshear of the Kentucky Guard,” Scottie Ellis, a spokesperson for Gov. Beshear, wrote to NPR in an email.

When contacted by NPR, spokespeople for each respective Democratic governor’s office made it clear that their guard members were sent to help specifically with America 250, not for law enforcement purposes as part of the larger ongoing federal joint task force operation. All four states have been clear about their opposition to the Trump administration’s ongoing deployment of National Guard troops to D.C., filing an amicus brief in support of litigation challenging it as recently as May.

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Senate Ethics Committee dismisses complaint against Sen. Ruben Gallego

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Senate Ethics Committee dismisses complaint against Sen. Ruben Gallego

Sen. Ruben Gallego, D-Ariz., walks out of the Senate chamber on Oct. 1, 2025.

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The Senate Ethics Committee has dismissed a complaint brought against Sen. Ruben Gallego involving allegations of campaign finance violations and potential sexual misconduct.

The allegations against the Arizona Democrat were brought to the committee in April by a fellow member of Congress, Rep. Anna Paulina Luna, R-Fla. But in a letter to Gallego dated June 26, the committee said it had uncovered no wrongdoing.

“Based on the investigation of the Committee, the Committee did not find evidence that your actions violated Federal law, Senate rules, or related standards of conduct,” the panel wrote.

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The panel also said it appreciated Gallego’s “full cooperation” throughout the investigation.

Gallego welcomed the findings, saying in a statement that the dismissal “reaffirms what I have said about these accusations from the beginning: they were right-wing conspiracies peddled by far-right activists like Anna Paulina Luna, the White House, and their allies.”

“I look forward to an apology from Rep. Luna for weaponizing the ethics process while refusing to investigate historic corruption that’s making life harder for families,” he continued.

Whispers about potential misconduct by Gallego began to circulate in April following the resignation of Rep. Eric Swalwell, D-Calif. Swalwell stepped down in response to a swell of sexual assault and misconduct allegations. NPR has not independently verified the allegations against Swalwell, but he has adamantly denied them.

Swalwell and Gallego were close friends, and during Swalwell’s short-lived 2020 presidential campaign, it was Gallego who served as campaign chair.

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In the immediate aftermath of Swalwell’s resignation, Gallego denied knowledge of any alleged history of sexual misconduct, though he acknowledged to reporters that their close friendship may have made it difficult for him to accept rumors about Swalwell and his behavior toward women.

“My friendship with him, our family’s friendship together with him, clouded my judgment, and I was wrong — I deeply, deeply regret that,” Gallego said.

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