Arm shares surge as new AI chip promises billions in revenue
U.S.-listed shares of Arm Holdings rose nearly 12% in premarket trading Wednesday after the chipmaker announced projections of billions in annual revenue from its new artificial intelligence (AI) data-center chip.
Traditionally known for licensing its designs to companies such as Nvidia and Qualcomm, Arm is now taking a direct approach by producing its own AGI CPU. Unlike existing AI chips that mainly support chatbots, this new processor is designed for “agentic AI” systems, which operate autonomously on behalf of users with minimal supervision.
CEO Rene Haas said the chip could generate about $15 billion in annual revenue within five years, contributing to an overall company revenue of $25 billion and projected annual earnings of $9 per share. Analysts from Citigroup praised Arm’s bold move, highlighting the high performance and energy efficiency of the new CPU.
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