Meta’s Co-Developed AGI CPU Delivers 2x Performance, Triggers 13% Rally
Arm’s AGI CPU, co-developed with Meta, features Neoverse V3 cores delivering twice the performance of x86 CPUs and helped drive a 13% rally on forecasts of $3 EPS in FY28 and $9 by FY31. Executives of Meta’s new AI acquisition are restricted from leaving China, raising operational and regulatory concerns.
1. AI Chip Co-Development with Arm
Meta and Arm have unveiled their first AGI CPU featuring Neoverse V3 cores and a high-bandwidth architecture designed for agentic AI workloads, delivering twice the performance of standard x86 processors and intended for deployment alongside Meta’s MTIA accelerator.
2. Analyst Forecasts and Market Reaction
Following the AGI CPU announcement, Arm shares surged 13%, supported by an upgrade to Outperform with a $166 price target, forecasts of $3 earnings per share in fiscal 2028 rising to $9 in fiscal 2031, and a projected $15 billion revenue potential by that year.
3. Leadership Travel Restrictions in China
Executives at the AI firm recently acquired by Meta face restrictions preventing them from leaving China, raising concerns about potential disruptions to ongoing research and cross-border collaboration within Meta’s AI units.