Arm CEO says tech selloff reflects short-term thinking on AI

Rene Haas argues investors are missing AI's long-term economic upside, even as Arm shares slid after record quarterly revenue Arm Holdings CEO Rene Haas has a message for the investors dumping tech stocks: you are thinking too small. Haas said the recent tech selloff reflects short-term thinking that follows the US midterm elections. In his view, that thinking overlooks the large long-term economic potential of artificial intelligence. It is a bold stance, given that his own company’s stock was among those getting sold. A record quarter, and a stock that fell anyway Haas made the comments alongside Arm’s fiscal second-quarter earnings. On paper, the results looked like a victory lap. Arm reported record revenue of $1.44 billion, a 27% increase year-over-year. That figure beat analysts’ expectations. Licensing revenue was a standout, jumping 50% to $773 million. Licensing is the upfront fee chip designers pay to use Arm’s architecture. A 50% surge there suggests a lot of new designs are being planned. Smartphone royalties came in at $670 million, growing just 8%. That number fell short of what the market wanted. Arm’s shares declined by approximately 5-12% after the report. The main...