ARM is down for a simple reason.

The company it is being hit by the same constraints as its peers as it transitions to manufacturing, notably Arista. Components are in short supply.

ARM confirmed accelerating demand - up to $2B for its new AGI CPU, but shared that it has secured enough components to meet ~50% of it, only.

This doesn't mean they won't fulfill it, but that they might have to accept higher prices and a potential hit on margins to meet accelerating demand.

Fundamentals remain extremely strong. Management expects a ~4x increase in CPU demand by 2030, but that also means a ~4x increase in component needs. And at today's valuation... That's a hard pill to swallow.

Now let's see if the market choses to rewards the actual trend and massive demand, even at today's valuation, over the shortage and margins issues. I'd know the answer to that question for any sector in the markets today, but this is AI hardware.

Today's going to be interesting.