Arm Launches 136-Core AGI CPU Aiming $15B Sales, Meta First Customer
Arm Holdings will produce its first own chips, launching a 136-core, 300W AGI CPU built by TSMC with Meta as its first customer and targeting $15 billion in annual sales within five years. The UK-based IP provider forecasts total revenue of $25 billion and $9 earnings per share by 2029.
1. Arm Enters Chip Manufacturing
For the first time, Arm Holdings is moving beyond IP licensing to produce its own 136-core, 300W AGI CPU. Taiwan Semiconductor Manufacturing Co. will handle fabrication, marking a strategic shift under CEO Rene Haas toward high-end data center semiconductors.
2. Revenue and Earnings Outlook
Arm expects the new chip business to generate $15 billion in annual sales within five years, outpacing its current IP revenues. Overall revenue is projected to reach $25 billion, with IP sales at $10 billion and earnings hitting $9 per share by 2029.
3. Implications for AMD’s Data Center Business
Arm’s entry into chip production intensifies competition in the data center CPU market where AMD is a major player. By capturing higher profit dollars per chip, Arm could pressure AMD’s market share and pricing power in next-generation AI server deployments.