GoKawiilArm Holdings stock popped 6% in after-hours trading on Tuesday as CEO Rene Haas announced 2031 annual revenue expectations that were more than six times what it was in 2025.
Haas unveiled Arm's first in-house chip on Tuesday at an event in San Francisco, with Meta as the initial customer. CNBC got an exclusive first look at the chip earlier this month, visiting the lab Arm built for it in Austin, Texas.
Arm stock closed about 1.5% lower on Tuesday following the chip announcement.
Haas said Arm expects the new chip to generate roughly $15 billion in annual revenue by 2031, with total annual revenue of $25 billion and earnings per share of $9.
Central processing units are seeing a resurgence of demand as agentic AI changes compute needs. Haas predicted CPUs will see a fourfold increase in demand around agentic AI.
"We may be under-calling that number," Haas said Tuesday. "I think the demand is higher than we think it is."
It's a huge lift for the chip design firm that generated just over $4 billion in annual revenue in 2025.