Arm Holdings said on March 24, 2026, that it is extending its compute platform into production silicon for the first time with the launch of the Arm AGI CPU, an Arm-designed chip for AI data centers built for agentic AI workloads. Reuters reported that Arm shares rose 6.5% in after-hours trading after the announcement, following a 1.4% decline in regular trading, while the stock had gained 22% so far this year.
Key insights
- Arm said the AGI CPU is the company’s first production silicon and the first product in a new data center silicon line.
- Reuters reported that Arm’s stock rose 6.5% in extended trading after the company outlined the new chip strategy and financial targets.
- Arm said Meta is its lead partner and customer on the chip, with other partners including OpenAI, Cloudflare, SAP and SK Telecom.
- Reuters reported that Taiwan Semiconductor Manufacturing Co. is fabricating the chip on 3-nanometer technology and that Arm plans volume production in the second half of 2026.
- Reuters reported Arm’s forecast that the new chip could generate about $15 billion in annual revenue in five years, alongside a companywide revenue target of $25 billion and earnings per share of $9.
Arm moves from licensing IP to shipping its own silicon
For more than three decades, Arm has primarily made money by licensing its processor designs and collecting royalties from chipmakers that use its architecture. Reuters reported that the new AGI CPU marks the first chip under a strategy Arm signaled to investors last year, when it said it was investing in its own chip development and hiring key executives to support the effort.
In its announcement, Arm said the AGI CPU represents “the next evolution” of the company’s compute platform and that it is entering production silicon “for the first time in the company’s history.” Arm said the chip is aimed at rising agentic AI workloads in data centers, where systems act on behalf of users with minimal oversight rather than simply answering chatbot-style prompts.
What Arm said about the new chip
Arm said the AGI CPU is designed for sustained performance across large numbers of parallel tasks and dense rack deployments. In its product material, the company said the chip is intended to support high-performance AI infrastructure while fitting within modern data center power and cooling limits. Arm also said the AGI CPU is based on Arm Neoverse CSS V3.
The company said the AGI CPU is available to order now and that commercial systems are available from ASRockRack, Lenovo and Supermicro. Arm also said it is introducing a reference server design and plans to contribute supporting firmware and system documentation to the Open Compute Project ecosystem.
Arm’s product page describes the AGI CPU as production silicon for AI infrastructure and says it is the first production silicon developed by Arm. The company said the platform is designed to deliver high performance and high rack density for agentic AI operations across modern data centers.
Partners and rollout plans
Arm said Meta is its lead partner and customer on the AGI CPU, and that the two companies co-developed the chip. Arm named Cerebras, Cloudflare, F5, OpenAI, Positron, Rebellions, SAP and SK Telecom as additional launch partners.
Reuters reported that Arm will be overseen on the new chip business by Mohamed Awad, the head of the company’s cloud AI business, and that Arm has additional designs in development that it plans to release at 12- to 18-month intervals. Arm’s own materials say follow-on products are committed, while keeping compatibility with the company’s existing data center roadmap.
Stock reaction and financial framing
Arm’s share price moved sharply after the announcement. Reuters reported that Arm stock jumped 6.5% in after-hours trading, even though it had closed down 1.4% during the regular session. Reuters also reported that the shares were up 22% for the year at that point.
The company’s financial targets, as reported by Reuters, put a large number on the new strategy. Arm said the AGI CPU could generate roughly $15 billion in annual revenue within about five years, and that Arm overall expects annual revenue of $25 billion and earnings per share of $9 over the same period. Those figures were presented by Arm as projections, not as current results.
Arm’s investor relations site shows the company’s latest quarterly materials were released in February 2026, before Tuesday’s product announcement. The site lists its quarterly results and shareholder letter for fiscal 2026, but the AGI CPU launch was disclosed separately on March 24, 2026.
Current status
Arm has announced its first production silicon product, the AGI CPU, said it is available to order, and described it as the start of a new data center silicon line. Reuters reported that volume production is planned for the second half of 2026 and that test chips are functioning as expected. No other shipment dates or production volumes were confirmed in the company’s announcement.
