**Arm Holdings (NASDAQ: ARM)** reported stronger-than-expected demand for its new AGI CPU, surpassing initial projections by over 100%, with anticipated revenues exceeding $2 billion over the next two fiscal years (2027 and 2028). However, the company faces supply chain constraints, primarily due to limited wafer capacity from Taiwan Semiconductor Manufacturing Company (TSMC) and memory chip shortages affecting key partners such as Meta Platforms and OpenAI.
Despite recent stock fluctuations linked to investor concerns over these supply issues, Arm’s CEO, Rene Haas, expressed confidence in capturing the largest market share in CPUs by the end of the decade, projecting annual revenue from the CPU to reach $15 billion by fiscal 2031. The company is navigating a total addressable market of approximately $100 billion for CPUs, with planned capital expenditures by top customers projected at $700 billion. Revenue related to the AGI CPU is not expected until Q4 2027.
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