AI boom creates winners and losers in semiconductors. Arm Holdings reported 26% revenue growth to $1.24 billion, beating expectations, driven by surging data center demand as server licensing revenue doubled year-over-year. However, the smartphone segment remains under pressure from memory shortages and rising component costs, causing Arm shares to fall 8% despite strong guidance. Qualcomm faced similar headwinds, with shares dropping nearly 10% after disappointing quarterly forecasts, citing memory constraints particularly in China. While both chipmakers benefit from AI-driven server infrastructure growth, smartphone weakness exposes a critical vulnerability in their core business segments.
