Arm Holdings Secures Strategic Shift with New CPU Launch
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 15 2025
0mins
Should l Buy ARM?
Arm Holdings PLC's stock rose by 3.02% and reached a 20-day high amid a broader market decline, with the Nasdaq-100 down 0.62% and the S&P 500 down 0.36%.
The company's recent unveiling of its first in-house data center CPU, the AGI CPU, marks a significant strategic shift from licensing to designing and selling its own chips. This move is expected to generate $25 billion in revenue by FY2031, with $15 billion projected from these in-house chips, showcasing Arm's ambitions in the semiconductor market.
This strategic pivot positions Arm favorably in the growing AI and data center markets, potentially offsetting challenges in the smartphone sector and aligning with long-term growth trends.
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Analyst Views on ARM
Wall Street analysts forecast ARM stock price to fall
24 Analyst Rating
19 Buy
4 Hold
1 Sell
Strong Buy
Current: 175.490
Low
120.00
Averages
160.58
High
201.00
Current: 175.490
Low
120.00
Averages
160.58
High
201.00
About ARM
Arm Holdings plc is a United Kingdom-based company. The Company is engaged in the design of central processing units (CPUs) and compute platforms for semiconductor chips. It develops and licenses CPU products and related technology. Its cloud and data center solutions include Arm AGI CPU and Arm Neoverse Compute Subsystems. The Arm Agentic Generalized Infrastructure (AGI) CPU is a production-ready system on a chip (SoC) for artificial intelligence (AI) data centers, delivering compute at scale. The Arm Neoverse Compute Subsystems (CSS) are pre-validated, performance-optimized compute platforms designed to accelerate infrastructure silicon development. The Company's primary markets include smartphone applications, processors and other chips used in mobile phones, consumer electronics, networking equipment, cloud and data center servers, automotive applications, Internet of Things (loT) and other embedded computing devices.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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