Arm's ambitious AI research and development efforts dragging down short-term profits, with a disappointing Q2 outlook leading to a post-market plunge of over 8%.

Chitong Finance App has learned that Arm Holdings (ARM.US), the world's largest provider of computer chip technology, announced lower-than-expected profit guidance for the second quarter due to increased investment in new product development. This unexpected outlook has caused the stock price to drop more than 8% after hours, surprising investors. Another company focusing on smartphone chips, Qualcomm (QCOM.US), also experienced a decline after releasing their financial report.