"Arm Holdings jumped nearly 15% on the day after unveiling the AGI CPU, its first in-house data center chip, with Meta as its debut customer. For more than three decades, Arm operated as the 'Switzerland of chips,' licensing its architecture to Nvidia, Apple, Amazon, and others while staying out of direct manufacturing. That model is now changing."
"The revenue ambition is real. The AGI CPU is projected to generate roughly $15 billion in annual revenue within about five years, with overall company revenue expected to reach $25 billion and annual earnings of $9 per share in that timeframe. Citigroup analysts captured the scale of the commitment, noting that 'Arm has not taken a baby step...it has jumped in with both feet.'"
The Nasdaq index rose 1.1% due to a significant drop in oil prices linked to potential U.S.-Iran peace talks and a surge in tech stocks. Arm Holdings experienced a nearly 15% increase after announcing its first in-house data center chip, the AGI CPU, with Meta as its initial customer. This strategic shift aims to generate $15 billion in annual revenue within five years. The broader chip sector also benefited, with Intel and AMD shares rising in response to Arm's announcement.
Read at 24/7 Wall St.
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