Key Points on Agentic AI and Arm Holdings
Anthropic’s Claude Code is positioning itself as a pivotal tool in the rise of agentic AI, projected to drive over 20% of daily code commits on GitHub by the end of the year, up from 4%. This shift necessitates significant increases in CPU computing power, which aligns with Arm Holdings’ capabilities.
In its third quarter, Arm Holdings (NASDAQ: ARM) saw data center royalty revenue more than double year-over-year and anticipates that its data center segment will surpass mobile as the largest revenue source in the coming years. With the demand for CPUs expected to surge as agentic AI evolves, Arm’s growth potential looks promising despite guidance for slower revenue growth in the fiscal fourth quarter.
