Arm Holdings (NASDAQ:ARM) delivered a record fiscal second quarter, yet its stock has fallen approximately 11. 5% as of noon following yesterday's earnings report. That's an uncomfortable reaction for a company reporting 27% revenue growth, a 33% increase in adjusted earnings and a 50% surge in licensing revenue. On paper, the AI growth story remains firmly intact. But investors aren't simply buying visible growth anymore. They're demanding evidence that today's AI spending will translate into sustainable earnings and cash flow.
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