Arm’s stock is up 92% in six months
Arm’s big AI bet is changing the story around the chip designer.
What changed?
- Arm announced its first-ever chip, the AGI CPU, for AI workloads in data centres.
- Meta, OpenAI, Cloudflare and SAP joined as early customers or partners.
- Arm says the chip could generate $15B in annual revenue by 2031.
The numbers are backing the hype
- Quarterly revenue crossed $1B for the second straight quarter.
- Royalty revenue rose 25% YoY.
- Data centre royalties more than doubled.
But there’s a catch
Arm now trades at around 60x next year’s expected earnings. That means a lot of future growth is already priced into the stock.
The big question now: Can Arm deliver enough AI growth to justify its valuation?
Read the full blog: Arm Stock Up 92% in 6 Months: The Shift to Own Silicon