Trending Now - Arm Projects $2B in AI Chip Sales Amid CPU Market Growth

WHO:

Techmeme - Arm, a chip design company.

CNBC - Arm Holdings, Advanced Micro Devices (AMD), Intel, Nvidia, Google, Amazon, and CEO Renee Haas.

WHAT:

Yahoo Finance Singapore - Arm's stock increased by 12% following the report but fell over 6% in premarket trading after executives expressed concerns about securing supplies to meet demand for a new chip.

Yahoo Finance Singapore - Arm's first-quarter revenue forecast is $1.26 billion, slightly above analysts' estimates of $1.25 billion.

Yahoo Finance Singapore - Arm's royalty revenue was $671 million, which was below expectations of $697.1 million.

Yahoo Finance Singapore - Arm's licensing and other revenue was $819 million, exceeding analysts' expectations of $774 million.

CNBC - Arm's non-GAAP operating expenses for the first quarter of fiscal year 2027 are expected to be $760 million, higher than the FactSet consensus estimate of $742 million.

CNBC - Arm expects non-GAAP earnings per share of 40 cents for the first quarter of fiscal year 2027, above the consensus estimate of 36 cents.

Techmeme - Arm has reported a line of sight to more than $1 billion of demand for its AGI CPU over the next two years, which has now been doubled to over $2 billion for fiscal year-end 2027 and 2028.

CNBC - AMD CEO Lisa Su stated that she expects the CPU server total addressable market to grow at a greater than 35% annual rate, reaching over $120 billion by 2030.

CNBC - Arm's CEO Renee Haas noted that the demand for Arm-based CPUs is driven by the shift to agentic AI workloads, stating, "The primary reason we did this... was that our customers asked for it."

Techmeme - Arm expects its AGI CPU to drive $2 billion in sales in FY2027 and FY2028.

CNBC - Arm reported a revenue increase of 20% year-over-year to $1.49 billion for its fiscal 2026 fourth quarter.

CNBC - Non-GAAP earnings per share (EPS) for Arm increased 9% to 60 cents, exceeding the expected 58 cents.

CNBC - Arm's shares dipped roughly 6% in after-hours trading after reporting earnings.

CNBC - Arm's stock closed at a record high of $237, with year-to-date gains of 117%.

CNBC - Arm's licensing and other revenue grew about 29% year-over-year to $819 million.

CNBC - Royalty revenue increased 11% year-over-year to $671 million.

CNBC - Arm's gross margins were 98.32% on a non-GAAP basis in the quarter.

WHERE:

CNBC - Arm's business is focused on the data center market, which is becoming its biggest source of revenue.

WHEN:

Techmeme - Arm's sales guidance was doubled from its March 2026 forecast.

CNBC - The fiscal year 2027 first quarter revenue guidance is $1.26 billion plus or minus $50 million.

WHY:

CNBC - The demand for Arm-based CPUs is driven by the shift from AI training to running models, which has reignited demand for central processing units.

CNBC - Arm's development of its own chip was in response to customer demand.

HOW:

Fast Company - The AI data center boom is redirecting capital and supplier attention toward high-bandwidth memory chips, impacting the supply chain for consumer electronics.

CNBC - Arm's AGI CPU is designed specifically for agentic AI workloads.

CNBC - Arm's business model includes collecting upfront license fees and royalties tied to chip shipments.

(UPDATED May 7, 2026 17:33 UTC)

Arm's stock initially surged by 12% following a report, but it later dropped over 6% in premarket trading as executives raised concerns about securing supplies for a new chip. The company is forecasting first-quarter revenue of $1.26 billion, slightly above analysts' expectations, while its royalty revenue came in at $671 million, falling short of the anticipated $697.1 million. On a positive note, Arm's licensing and other revenue reached $819 million, exceeding expectations, and they project non-GAAP earnings per share of 40 cents for the first quarter of fiscal year 2027, which is higher than the consensus estimate of 36 cents.

(UPDATED May 7, 2026 11:39 UTC)

Arm has announced a significant increase in demand for its AGI CPU, now projected to exceed $2 billion by the end of fiscal years 2027 and 2028, driven by the growing need for agentic AI workloads, according to CEO Renee Haas. Meanwhile, AMD's CEO Lisa Su anticipates that the total addressable market for CPU servers will grow at an impressive annual rate of over 35%, potentially surpassing $120 billion by 2030. This surge in AI data center activity is also shifting focus and resources towards high-bandwidth memory chips, which is having a notable impact on the supply chain for consumer electronics.

(UPDATED May 7, 2026 05:59 UTC)

Arm, a chip design company, is anticipating that its upcoming AGI CPU will generate $2 billion in sales during fiscal years 2027 and 2028, following a strong revenue increase of 20% year-over-year to $1.49 billion in the fourth quarter of fiscal 2026. Despite this positive growth, Arm's shares dipped about 6% in after-hours trading after the earnings report, although they closed at a record high of $237, reflecting a remarkable year-to-date gain of 117%. The company is focusing on the data center market, which has become its largest revenue source, driven by rising demand for Arm-based CPUs as businesses shift from AI training to running models.