Arm jumps 16% on first AI chip launch, naming Meta as customer

Arm Holdings (ARM) shares rose 16.5% Wednesday after announcing its first in-house processor.

The AGI CPU targets AI data centers, marking a pivot from the company's traditional licensing-only model.

Meta Platforms signed on as the first major customer for the new hardware.

The chip optimizes agentic AI workloads as Arm enters the silicon sales market.

CEO Rene Haas expects the processor to generate $15 billion in annual revenue by 2031.

Haas forecasts total company revenue could reach $25 billion by that year.

Guggenheim raised its price target on the stock following the strategic shift.