Bloomberg Talks Arm CEO Rene Haas Talks Earnings
May 8, 2025
Rene Haas, the CEO of Arm, dives into the company's cautious forecast while maintaining an optimistic view on royalty growth for Q1. He discusses the complexities of chip licensing, including how tariffs affect partnerships and the shift towards more integrated offerings. The conversation also highlights the booming potential of AI data centers and the significant investments they attract. Additionally, Rene addresses the risks tied to client concentration and the increasing demand for semiconductors driven by advancements in AI technology.
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Arm's Strong Revenue and Cautious Outlook
- Arm's revenue hit a record $4 billion with strong royalty growth projected for Q1 at 25-30%.
- Licensing deals cause cautious outlook due to their unpredictable closing times.
Indirect Impact of Tariffs on Arm
- Arm designs technology licensed to chip makers but feels demand uncertainty indirectly through royalties.
- Lack of clarity around tariffs among partners creates visibility challenges on demand forecasts.
Shift to Compute Subsystems Royalties
- Arm is shifting to license compute subsystems which bundle multiple IP blocks, commanding higher royalties.
- This approach accelerates customers' chip development and improves design predictability.