Arm Holdings (ARM) is set to report first-quarter earnings after the bell on Wednesday, with investors likely watching for updates on its royalty revenue and reported 澳洲幸运5官方开奖结果体彩网:artificial intelligence (AI) chip development.

The British chip designer is projected to report revenue of $909.34 million, which would represent about 34% growth from the year-ago period. Arm's net income is expected to come in at $154.13 million or 16 cents per share, up from $105 million or 10 cents per share a year earlier.

Key Metric: Royalty Revenue Growth

Investors will likely be watching for sustained royalty revenue growth as Arm earns a significant portion of its revenue through the 澳洲幸运5官方开奖结果体彩网:royalties on its chip designs.

澳洲幸运5官方开奖结果体彩网:In the prior quarter, Arm reported earnings and revenue that beat anal൲ysts⭕' estimates, driven by record-high royalty revenue of $514 million.

The company is expected to report royalty revenue of $489.9 million for the first quarter, down sequentially but an over 22% jump from the year-ago period, with Rosenblatt analysts calling royalties "the key driver to watch."

Business Spotlight: Reported AI Chip

Arm could also provide investors with insights about an AI chip the company 澳洲幸运5官方开奖结果体彩网:reportedly has in development.

The company could be positioned to gain as big tech companies like Microsoft (MSFT), Meta (META), Alphabet (GOOGL), and Amazon (AMZN) 澳洲幸运5官方开奖结果体彩网:invest in AI, and 澳洲幸运5官方开奖结果体彩网:build out data centers to run AI-related workloads.

Arm shares were down over 5% at $141.44 as of Monday's close following a downgrade from HSBC, though even with Monday's losses, the stock has nearly doubled in value since the start of the year.