U.S.-listed shares of Arm Holdings jumped nearly 12% in premarket trading after projecting billions in annual revenue from its new AI data-center chip. This marks a pivot for Arm, traditionally reliant on licensing chip designs to firms like Nvidia and Qualcomm. Unlike current chips, Arm’s AGI CPU will handle data-crunching needs of 'agentic AI', acting on behalf of users with minimal oversight. CEO Rene Haas expects the chip to generate roughly $15 billion annually in five years, contributing to overall revenue of $25 billion and annual earnings of $9 per share during that period.
Analysts at Citigroup highlighted Arm’s bold move, noting the industry’s growing need for more CPUs as 'agentic AI' rises. Shares of competitors like Intel (+3.4%) and AMD (+1%) also saw gains.