Chip and run

20 April 2016 By Dominic Elliott

ARM and ASML each posted consensus-beating first-quarter earnings, but the outlook is less assured. The UK chip designer warned on the impact of slower economic growth, while the Dutch etching equipment maker’s net bookings dropped. At least both are in better shape than Intel.

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ARM Holdings on April 20 reported a slightly better-than-expected 14 percent rise in first-quarter profit as the provider of technology for the iPhone outperformed a weak semiconductor market with strong demand for its most advanced chips.

But it cautioned that macroeconomic uncertainty remained, and could influence consumer and enterprise spending this year, potentially impacting semiconductor sales.

Also on April 20, ASML Holding posted first-quarter earnings ahead of expectations, and said it expects a strong second quarter.

Despite a generally upbeat outlook, ASML’s net bookings declined to 835 million euros from 1.18 billion euros in the fourth quarter.

By 0901 BST, ARM shares had risen 3.5 percent to 988 pence. ASML shares were up 1.5 percent to 89.53 euros.

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But it cautioned that macroeconomic uncertainty remained, and could influence consumer and enterprise spending this year, potentially impacting semiconductor sales.

Also on April 20, ASML Holding posted first-quarter earnings ahead of expectations, and said it expects a strong second quarter.

Despite a generally upbeat outlook, ASML’s net bookings declined to 835 million euros from 1.18 billion euros in the fourth quarter.

By 0901 BST, ARM shares had risen 3.5 percent to 988 pence. ASML shares were up 1.5 percent to 89.53 euros.

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