Arm CEO Grows Confident in $2B Revenue Outlook for New AI Chip

Arm Holdings' new data center chip, dubbed the AGI CPU, is gaining momentum as CEO Rene Haas expressed increased confidence in meeting Wall Street's revenue expectations. The company's stock fell 10% after its May earnings call, when it maintained a $1 billion revenue outlook despite having visibility into $2 billion in demand for the chip.

The decline was attributed to concerns about securing sufficient supply amid intense competition from other chipmakers. However, Arm's confidence has improved since then, with Haas stating that his optimism has grown further as of September.

Shares of Arm have held their July gains but remain 45% below their June high of $452 after a parabolic run in the first half of the year.