Arm shares fall as soft forecast takes shine off AI optimism

FILE PHOTO: A smartphone with a displayed Arm Ltd logo is placed on a computer motherboard in this illustration taken March 6, 2023. REUTERS/Dado Ruvic/Illustration/File Photo

(Reuters) -Shares of Arm Holdings fell on Thursday as the chip designer's softer-than-expected annual revenue forecast cooled some of the enthusiasm around the stock following its AI-powered jump in recent months.

The stock fell as much as 8.5% before paring some of its losses to trade 1.5% lower at $104.50 in the afternoon.