Arm Holdings Reports Record Revenue and High AGI CPU Demand

Arm Holdings reported record fiscal first-quarter revenue of $1.29 billion, representing a 22% year-over-year increase. The company's adjusted earnings of $0.45 per share exceeded Wall Street expectations. This growth is driven by an expansion beyond smartphones into AI data centers, cloud infrastructure, and PCs, with cloud AI and data-center royalties more than doubling year-over-year.

CEO Rene Haas announced that customer demand for the company's new AGI CPU, which is designed for agentic AI workloads, now exceeds $2 billion for fiscal 2027 and 2028. Oracle is among the customers utilizing the AGI CPU. The company has established a long-term revenue target of $25 billion annually by fiscal 2031.

Market reaction remains generally positive despite high valuation risks. Analysts from J.P. Morgan and Jefferies maintained bullish ratings, while HSBC issued a hold rating, citing concerns regarding manufacturing capacity.