Arm Warns of Phone Market Weakness
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Bloomberg Audio Studios Podcasts Radio News. Bloomberg Tech is alive from coast to coast with Caroline Hyde in New York and Ed Lovelo in San Francisco.
This is Bloomberg Tech coming up. Arm warns of some sluggishness in the smartphone industry, but shows AI data center growth is there to offset the slump. We'll discuss with the CEO. As Anthropic signs an agreement with Elon Musk's SpaceX to access computing resources from its competitor. And we speak with the CEO of Hawkeye 360. That says the satellite surveillance firm raises $416 million in its IPO. But first, we check in on these. Markets that on the tech side of the equation managed to sustain the rally. We're at a new record high. We're up for a third straight day, but importantly, we're up on the week, and that's a sixth straight week of gains. Haven't seen that in a couple of weeks, in a couple of years, in fact, on the Nasdaq 100.
We're still seeing that optimism around AI. We, of course, have the clouds of geopolitics, and in many ways, we are somewhat concerned about whether or not a peace deal will be moving forward with Iran and the United States. So otherwise traders taking perhaps a little bit more cautious tone on other benchmarks. But tech drives higher. And let's look at how the earnings continue to flow through. Look, I'm focusing in on ARM. It's having a rough day. We're off by some 8%. But build into the context that this is a stock that has rallied hard so far this year on optimism of AGI CPU, on optimism of applications in the AI data center, but also there is still, of course, the royalties. The licenses that go towards smartphones.
And I want to talk about just that at the moment, because we're joined now by the CEO of ARM more broadly, Renee Haas. I'm pleased to say you're joining us from San Diego. And Renee, no the market perhaps digesting recent run-ups in the stock, but also digesting what you warned that you're seeing in the smartphone arena. And that's because of memory prices. Just dictate a little bit of what you've seen in the space.
Uh uh good morning, Caroline, and I'm in San Jose, not San Diego, but that's okay. Um you know, in terms of the the overall market and and the quarter, we are we could not be happier in terms of the results that we had this last quarter. It was uh one point five billion dollars in that neighborhood of revenue, which Not long ago used to be a an annual revenue number for for the company. Our data center business doubled year on year, uh, and we're seeing you know huge, huge demand for our new product, the the ARM AGI uh CPU. So all of that has really um added up to a a terrific quarter. To your question as far as smartphones, um we have definitely seen a slowdown there as well. However, I would say compared to some of the other folks in the market, uh we're not really as exposed there.
Uh probably for two big reasons. Number one, a lot of our volume comes from the premium segment where the royalty rates are quite rich using version nine. And where the slowdown has taken place, we've seen is mostly in the in the lower end of the market where there's not a large royalty contribution for us.
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Chapters
8 chapters
1
What is the main topic discussed in this episode?
0:00–6:55
2
Why is Arm warning about weakness in the smartphone market?
6:55–12:48
3
How is Arm’s CEO Rene Haas explaining the impact of memory‑price pressure on smartphone royalties?
12:48–15:17
4
What is driving the rapid growth of Arm’s AI data‑center business?
15:17–19:18
5
How did Anthropic secure computing resources from Elon Musk’s SpaceX (XAI) for its AI models?
19:18–23:59
6
What are the key details of Hawkeye 360’s $416 million IPO and its satellite‑surveillance business?
23:59–31:01
7
Why are investors focused on Core Weave’s AI‑cloud capacity and its funding strategy?
31:01–39:03
8
How is Chime leveraging AI to boost member growth and product innovation?
39:03–44:56
Speakers
10 identifiedMore from Bloomberg Tech
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