Arm stocks exponentially rose to 20% after the company stated that its recently launched in-house chip would generate $15 billion in revenue alone by 2031.
The chip was unveiled at an event in San Francisco on Tuesday, which is particularly designed for AI inference in data centers, as demands for central processing units saw a significant spike with an increase of agentic AI.
The latest chip is likely to generate $15 billion in revenue by 2031, with total annual revenue of $25 billion and earnings every share of $9, Arm’s CEO Rene Haas stated at the event.
The revenue expectation is six times higher as compared to its revenue in 2025, which was $4 billion.
On Tuesday, March 24, 2026, ARM shares closed down 1.5%.
Other chip names also surged on Wednesday, with shares of Nvidia, Advanced Micro Devices and Intel seeing growth.
As per Citi analysts, Arm’s announcement is the “most significant shift in the company’s history.”
The analysts stated.“Arm’s forecasts are well above even the highest of speculated estimates,” and should ease any concerns about a change in the company’s margin structure,
“The $15bn in revenue forecast would, on those metrics, drive $7.5bn/$5bn in incremental gross/operating profit, such a significant increase versus prior expectations that we think the market should not worry about the change in margin structure. It is the incremental profit and cash flow that is the driver of shareholder value,” they added.
Notably, Meta is the first official customer for Arm’s new chip as the company has committed to establish a huge data center and plans $135 billion in capital expenditure related to AI this year.
OpenAI, Cloudflare, and SAP have also become its customers.
