Arm CEO Expresses Increased Confidence in Meeting $2 Billion Revenue Target for New AI Chip
Arm Holdings CEO Rene Haas expressed growing confidence on September 19 that the company can secure enough supply to meet a revised revenue target of $2 billion for its new AGI CPU, up from an initial estimate of $1 billion. The chip is Arm's first in-house central processing unit designed for data centers and marks a significant shift as the company moves beyond licensing designs toward selling complete chips. Haas noted that supply constraints have been a key concern amid high demand during the AI boom, but his confidence has increased since May when the $2 billion target was first mentioned. The stock initially dropped 10% after Arm maintained its original revenue outlook in May due to production concerns, but it rose over 7% following improved guidance on July's earnings call. Despite recent gains, shares remain about 45% below their June high of $452. Cramer’s Charitable Trust previously owned the stock and sold after a significant run-up.
Tickers: $ARM
Topics: AGI CPU data center chips revenue expectations supply chain