Arm's stock price fell by 11% due to a chip supplier's prediction of a decline in sales and refusal to provide full-year performance guidance.

On Wednesday, Arm Holdings ARM.O stock price dropped 11% as the chip supplier's first-quarter performance expectations were lower than Wall Street's expectations, and they refused to provide annual performance guidance citing global trade and economic uncertainties. Arm's fourth-quarter revenue was slightly higher than analyst expectations, but like other companies, they are cautious about quarterly performance expectations. The global tariffs announced by U.S. President Trump and the stricter restrictions on the export of advanced semiconductors to China, a major chip market, have cast a shadow over the prospects of semiconductor companies. "Given the uncertainty of global trade and economic conditions, our visibility at the beginning of the year is lower than usual. Therefore, we believe it is not wise to provide annual guidance," said CFO Jason Child to analysts on a conference call. Before Arm made this statement, other chip manufacturers such as Samsung and Qualcomm also issued similar warnings. The company expects first-quarter revenue to be between $1 billion and $1.1 billion, with the midpoint below the analyst average expectation of $1.1 billion. Arm expects adjusted earnings per share for the first quarter to be between 30 and 38 cents, while the expectation is 42 cents per share.