Arm shares soared by 20% after the company announced that it would generate $15 billion in revenue by 2031 from its recently launched chips alone.
The chip was announced at an event in San Francisco on Tuesday. The chip is specifically designed for AI inference in data centers, as the demand for central processing units has skyrocketed with the rise of agent AI.
The latest chips are likely to generate $15 billion in revenue by 2031, with total annual revenue of $25 billion and earnings per share of $9, Arm CEO Rene Haas said at the event.
This revenue estimate is six times higher than 2025 revenue of $4 billion.
ARM stock closed down 1.5% on Tuesday, March 24, 2026.
Other chip names also soared Wednesday, with Nvidia, Advanced Micro Devices and Intel shares rising.
Citi analysts said Arm’s announcement was “the most significant change in the company’s history.”
“Arm’s forecasts are well above even the highest estimates, which should ease concerns about changes to the company’s profit structure,” analysts said.
“Based on these metrics, the $15 billion revenue forecast would result in incremental gross/operating profit of $7.5 billion/$5 billion. This is a significant increase relative to prior expectations, so we believe the market need not worry about changes to the margin structure. It is incremental earnings and cash flow that will drive shareholder value,” they added.
Notably, Meta is the first official customer for Arm’s new chip, as the company has committed to building huge data centers and plans $135 billion in capital spending related to AI this year.
OpenAI, Cloudflare, and SAP are also customers.
