Arm's stock falls after earnings, showing how high the bar is for AI companies now

Core Viewpoint - Arm Holdings' stock declined despite reporting strong earnings, indicating that investor expectations for AI companies are exceptionally high in the current market environment [1] Earnings Results - Arm reported revenue of $1.24 billion for the fiscal third quarter, representing a 26% increase from the previous year and slightly exceeding analyst expectations of $1.23 billion [1] - Adjusted earnings per share were 43 cents, surpassing the FactSet consensus of 41 cents [1] Market Context - The decline in Arm's stock post-earnings reflects a broader trend where investors are scrutinizing AI companies more rigorously [1] - CEO Rene Haas mentioned that memory shortages could have a minor impact on the business, highlighting potential supply chain challenges [1]