(Bloomberg/Ian King) — Arm Holdings Plc, which provides the most widely used technology in computing chips, gave a lower-than-expected profit forecast for the current period after ramping up spending on new products.

Fiscal second-quarter earnings will be 29 cents to 37 cents a share, excluding some items, the company said in a statement on Wednesday. Analysts had projected 35 cents on average. Revenue will be $1.01 billion to $1.11 billion, compared with an estimate of $1.06 billion.

The outlook jarred investors, who sent Arm shares down as much as 14% after markets opened in New York on Thursday, their biggest intraday decline in almost a year. Qualcomm Inc., another chip company focused on smartphones, also declined after posting its own results.

Arm is increasing expenditures to bet

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