Arm Holdings to Launch Own AI Chips in Major Strategic Shift

Arm Holdings is preparing to manufacture its own computer chips, naming the new processor the "AGI CPU," marking a significant departure from its traditional licensing model. Following the announcement and positive revenue guidance, the company's stock surged 15.8% to $156.36, its best single-day performance in a year. ARM is now positioning itself as a frontrunner in the 'Agentic AI' revolution, leveraging its new in-house chip manufacturing as a primary technological catalyst. The company projects that this new division will generate approximately $15 billion in revenue by 2031, with Meta Platforms already identified as the flagship launch customer. This strategic pivot reflects SoftBank Group's broader ambition to capture a larger share of the AI data center market and challenge Nvidia's dominance.