Arm Holdings Breaks New Ground with Debut In-House Chip, Boosting Stock by 16%
Marking a significant milestone in its 35-year history, Arm Holdings has unveiled its first-ever in-house chip. The British semiconductor titan made the announcement of the AGI CPU, a data center chip specifically designed for AI inference applications, at a San Francisco event on Tuesday, March 24, 2026.
The unveiling triggered a 16% surge in Arm’s stock the following day. CEO Rene Haas anticipates that the new chip will generate a whopping $15 billion in revenue by 2031, pushing the total annual revenue to an impressive $25 billion. This projection signifies a six-fold increase from the company’s $4 billion revenue in 2025.
Among the early adopters of the new chip is Meta, with other major partners including OpenAI, Cloudflare, and Cerebras.
The AGI CPU, manufactured by Taiwan Semiconductor Manufacturing Company on its 3-nanometer node, boasts up to 136 cores and consumes 300 watts of power. This move has been hailed by Citi analysts as the “most significant shift in the company’s history,” signifying Arm’s transition from merely licensing chip architectures to directly competing with former partners in physical silicon production.
Source: CNBC