The largest transformation in history, from passively collecting licensing fees to actively making chips. The first self-developed AGI CPU, with an estimated single product revenue of 15 billion dollars in 2031, overall revenue soaring to 25 billion annually—six times higher than in 2025.
The key is that Meta and OpenAI have already taken the lead.
What does this mean? AI is taking a piece of the pie, and Arm does not intend to just take a share, but instead wants to serve the whole plate. Citi analyst's original words: "This is the most significant shift in Arm's history."
Even more ruthless, the AGI CPU is specially designed for the AI agent era, targeting the inference needs of data centers. A trillion-dollar market, and Arm wants to take a bite of it.
Gross profit margin is about 50%, and the pricing is still competitive, this is just saying to the customers - if you don't want to make chips yourself, come to me.
Amazon, Microsoft, Google, Nvidia, all are its customers, and now all are its competitors. But the stock price rose 14% in one day, and the market is voting with its feet: well done.
The AI chip war has a new heavyweight player. And this player holds the key to the entire ecosystem.
Stop saying Arm is just 'that company that makes mobile chips.' What it is aiming for is the throne of AI computing power.