What You Need To Know Ahead of Arm’s Earnings Report [Video]

Arm Holdings (ARM) is set to report first-quarter earnings after the bell on Wednesday, with investors likely watching for updates on its royalty revenue and reported artificial intelligence (AI) chip development.

The British chip designer is projected to report revenue of $909.34 million, which would represent about 34% growth from the year-ago period. Arm’s net income is expected to come in at $154.13 million or 16 cents per share, up from $105 million or 10 cents per share a year earlier.

Investors will likely be watching for sustained royalty revenue growth as Arm earns a significant portion of its revenue through the royalties on its chip designs.

In the prior quarter, Arm reported earnings and revenue that beat analysts’ estimates, driven by record-high royalty revenue of $514 million.

The company is expected to report royalty revenue of $489.9 million for the first quarter, down sequentially but an over 22% jump from the year-ago period, …