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Arm considers developing own chips; stock falls as outlook disappoints

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Chip architecture provider Arm Holdings is investing in developing its own chips, CEO Rene Haas said on Wednesday, marking a major shift to its model of licensing its blueprints to other companies.

Arm also issued quarterly forecasts that failed to satisfy investors who have sent the company’s stock surging in recent months on expectations it will become a key player in artificial intelligence. Arm shares slumped around 8% in extended trading on Wednesday.

The plan to invest more heavily in developing its own chips marks a departure from Arm’s…

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