Arm Holdings is transitioning from licensing chip designs to manufacturing and selling its own artificial intelligence processors. This move departs from its history of licensing designs to partners like Nvidia and Qualcomm. These new chips target agentic AI, which are advanced systems designed to act independently on behalf of users.
The company projects these new processors will generate $15 billion in annual revenue. Arm expects to reach this revenue target within five years.
Arm stock rose nearly 12% in pre-market trading. This price movement occurred on March 25, 2026.
The news also lifted shares of Intel and AMD as investors anticipate rising demand for AI-capable CPUs. This shift places Arm in direct competition with major players in the data center and AI inference sectors.
CEO Rene Haas issued these revenue targets to signal confidence in the company's new production model. Citigroup analysts characterized the move as a decisive pivot into direct chip manufacturing.