Arm Stock Rises on $15B Revenue Forecast for New Chip
Why this is here: Arm expects its new chip to generate $15 billion in annual revenue by 2031, a figure more than six times its 2025 revenue of just over $4 billion.
Arm Holdings stock increased 6% in after-hours trading Tuesday after CEO Rene Haas projected $15 billion in annual revenue by 2031 from a new in-house chip. Haas unveiled the chip, with Meta as its first customer, at an event in San Francisco.
Arm anticipates total annual revenue reaching $25 billion with earnings per share of $9 by 2031. The company’s 2025 annual revenue was just over $4 billion. Demand for central processing units is increasing due to agentic AI, which Haas predicts will drive a fourfold increase in CPU demand.
The Arm AGI CPU is designed for AI inference and represents a shift for the company as it enters direct competition with its customers. Arm CFO Jason Child stated the new chip has a roughly 50% gross profit margin and expands the company’s market reach.