Copyright Benzinga
While Washington's chip rhetoric grows louder, Arm Holdings PLC's (NASDAQ:ARM) sales in China are surging. Chief financial officer Jason Child told analysts that "China is maybe 22% of sales this quarter," adding that demand from the region "looks to be as strong as we’ve ever seen." Track ARM stock here. Read Also: Cramer Gushes Over ARM—Is It The Next Must-Own AI Stock? China's Appetite For ARM Child said the quarter's outperformance was driven by "one of our largest license deals actually came out of China," noting that "license was slightly more of the overperformance" compared with royalties. The company's licensing pipeline in China, he added, remains robust: "Our pipeline indicates that we have a pretty strong, pretty strong license pipeline for the remainder of the year." Read Also: Arm Stock Climbs After Q2 Earnings Beat Estimates: Details Business Before Politics As U.S. restrictions continue to squeeze chip exports, ARM's assertive China showing highlights how deeply its IP is embedded across global supply chains. The company's neutral architecture allows it to navigate geopolitical currents that have tripped up chipmakers like Nvidia Corp (NASDAQ:NVDA) and Intel Corp (NASDAQ:INTC). Even as Washington's trade stance tightens, ARM's licensing model appears to be thriving on both sides of the Pacific. A Quiet Record In A Noisy Market Child credited a mix of large deals and steady royalty growth for the record China performance. "Royalties are also growing strong in China as well," he added, emphasizing that licensing was the bigger near-term driver. For investors, the takeaway is clear: while political headlines dominate, ARM's licensing economics remain global — and China, far from a risk, is still one of its most lucrative markets. Read Next: Intel Roars Back With ‘Panther Lake’ — But Arm’s CEO Isn’t Buying It Just Yet Photo: Shutterstock
