Arm Holdings posts record Q4 earnings with $1,490 million revenue and $313 million net income, driven by AI-focused AGI CPU platform demand, but shares fell 10.1% post-results amid supply and smartphone concerns.

Arm reported fourth quarter revenue of US$1,490 million and net income of US$313 million, with results driven by strong demand for its AI-focused AGI CPU platform.

Stock volatility reflected investor concerns: a 10.1% one day share price decline after earnings, yet the 30 day share price return is 48.29% and the 1 year total shareholder return is 83.09%.

Arm trades at a P/S of 48.6×, above peers at 13.2× and the US Semiconductor industry at 8.6×, while the most followed narrative values the company at US$39.16 per share versus a last close of $213.33, marking a significant valuation gap.