Arm Holdings Expands into Chipmaking with AGI CPU
Arm Holdings (NASDAQ: ARM) has announced the launch of its first chip, the Arm AGI CPU, marking its entry into chipmaking. The company expects this new product will drive revenue up to $15 billion annually by fiscal 2031, significantly contributing to an overall revenue forecast of $25 billion for that year. This ambitious plan follows its IPO on September 14, 2023, during which Arm’s stock has already surged over 200%.
In fiscal Q3 2026, Arm reported $1.2 billion in revenue, reflecting a 26% year-over-year increase. The AGI CPU, optimized for AI applications, features 64 CPUs and 8,700 cores, and has already attracted interest from major tech companies including Meta Platforms and OpenAI. If successful, Arm anticipates earnings per share could reach $9 by 2031, pointing to a potential stock price increase of 318% from its current level of approximately $157.
