There was no relief for ARM Holdings today after analysts at Exane BNP provided sceptics with plenty of ammunition for their bear case against the microchip designer.
Shares in the blue-chip technology company lost 55p, or 5.2pc, to 995p, bringing their total fall since Tuesday, when ARM held an investor day, to 9.2pc.
The catalyst for the decline was a downgrade to “neutral” from “outperform” by Exane analysts, who reckoned that the company’s “ability to continue beating market expectations is now limited”.
Worries over growing competition from Intel have hurt ARM shares this week. The Exane experts added fuel to that fire, arguing that the US giant’s Silvermont platform – a new design for one of its flagship chips – “could mark the end of ARM’s monopoly on smartphones and especially on tablets”.
They added that the British group’s chances of cracking the PC and servers market “remain slim and its revenue opportunities are limited”. ARM, on what was a poor day for equities worldwide, ended the session as the second-heaviest faller in the FTSE 100.