Arm Holdings Shares Jump 13% on $15 Billion AGI CPU Forecast by 2031
Arm Holdings shares jumped 13% after CEO Rene Haas said its first in-house AGI CPU could drive $15 billion in annual revenue by 2031, contributing to $25 billion total revenues and $9 EPS that year. Haas said CPU demand could quadruple with Meta as initial customer and partners like OpenAI.
1. First In-House AGI CPU Launch
At a San Francisco event, CEO Rene Haas unveiled Arm’s first internally developed AGI CPU featuring Neoverse V3 cores and high-bandwidth architecture optimized for agentic AI workloads. Meta will be the initial customer and has committed to multiple processor generations.
2. Revenue and EPS Projections
Haas projected the AGI CPU will generate about $15 billion in annual sales by 2031, boosting total company revenue to $25 billion and earnings per share to $9 in the same year. He also forecast CPU demand could increase fourfold as AI workloads shift to central processors.
3. Partnerships and Market Opportunity
Arm confirmed deployments with partners including Cerebras, Cloudflare, F5, OpenAI, Positron, Rebellions, SAP and SK Telecom, positioning the company in the over $100 billion merchant CPU market. These alliances support growth beyond its traditional licensing royalties model.
4. Stock Reaction and Analyst Upgrades
Shares gained as much as 13% premarket on enthusiasm for Arm’s expanded business model. Analysts at Raymond James upgraded the stock to Outperform with a $166 target, while Wolfe Research raised EPS forecasts to over $3 by FY28, highlighting stronger profit potential.