Shares fell after Arm said it expects smartphone royalties to fall in "this next quarter. "The more inference workloads you run, that creates work that only CPUs can do," Arm CEO Rene Haas told Reuters. Qualcomm also launched its C1000 data ⁠center chip, which does not contribute to Arm revenue now but will in the future, he said. Revenue ​from royalties rose 22% to $715 million in the first quarter, while licensing revenue increased ​23% to $574 million. Its AGI CPU, a new AI data center chip unveiled in March, is exceeding initial expectations, with demand surpassing $2 billion across fiscal years 2027 and 2028, the ‌company said.