GoKawiilRene Haas, chief executive officer of Arm Holdings Plc, holds the AGI CPU chip during the Arm Everywhere event in San Francisco, California, US, on Tuesday, March 24, 2026.
Arm jumped 20% on Wednesday after the company said its newly released in-house chip would generate $15 billion in revenue alone by 2031.
The British semiconductor and software design firm revealed its first-ever internal chip, the AGI CPU, at an event in San Francisco on Tuesday. The chip is designed specifically for AI inference in data centers, as demand for central processing units has surged with the rise of agentic AI.
The new chip is expected to generate $15 billion in revenue by 2031, with total annual revenue of $25 billion and earnings per share of $9, Arm's CEO Rene Haas said at the event. The revenue expectation is six times more than the $4 billion it generated in annual revenue in 2025.
The stock closed down 1.5% on Tuesday.
Other chip names also climbed on Wednesday, with shares of Nvidia , Advanced Micro Devices and Intel all climbing.
For decades, Arm has typically licensed its instruction sets to other companies and collected royalties on every processor made with its designs. However, with its new chip, it's now competing with its own customers, including Amazon , Microsoft , Nvidia , and Google .