Arm Holdings is set to enter the artificial general intelligence (AGI) CPU market, with anticipated revenues beginning in fiscal 2028 and expected to reach approximately $15 billion by fiscal 2031. The company attributes its initiative to growing customer demand rather than a push from within, which suggests a favorable market pull. This move aims to create a new revenue stream while maintaining Arm’s existing intellectual property and Compute Subsystems business.
As Arm prepares for this expansion, it faces competition from peers like NVIDIA and Intel. Unlike NVIDIA, which does not provide direct comparisons for operating forecasts, Arm’s success will largely depend on its ability to scale up sales, particularly in 2028, without compromising its current business model. Year-to-date, Arm’s stock has surged 115%, outpacing the industry average of 24%, while it currently trades at a forward price-to-sales ratio of 35.78X compared to the industry’s 4.87X.
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