Reuters Semiconductor company Arm Holdings, on Wednesday gave a fiscal thirdquarter sales outlook below Wall Street estimates, with the company attributing the forecast to a large deal that will likely land later than expected.

Arm39;s shares dove 8 to 50 in extended trading after the news.

But the company, which sells designs and other intellectual property for creating computing chips that power most of the world39;s mobile phones, also forecast fiscal fullyear sales that beat Wall Street expectations, powered by a wave of companies designing new chips amid a boom in artificial intelligence applications.

Arm became publicly listed again in September after Japan39;s SoftBank Group, which still owns more than 90 of Arm, sold off some of its shares. One issue that the company is grappling with is new accounting rules that affect how it must recognize revenue from large, multiyear license deals.

In a shareholder letter, Arm39;s top executives said that revenue recognition profiles for future agreements are subject to change.

Analysts said that the unpredictability raises questions about Arm39;s valuation, which, at more than 65 billion after its initial public offering, was far higher relative to its anticipated annual revenue than any other chip company.

There are still questions about whether there is a sustainable growth narrative for this company, said Ben Bajarin, chief executive and principal analyst at Creative Strategies. The quarter looked good, but the…