Arm rises up to 5% on $2B AI chip sales outlook

Arm Holdings shares rose between 3.3% and 5.0% in pre-market trading on 17 September. The move followed an appearance by CEO Rene Haas on CNBC's Mad Money. Haas said confidence has increased in securing manufacturing capacity to satisfy customer demand for the company's in-house AGI CPU.

Haas pointed to customer demand visibility of 2.0 billion dollars for the processor across fiscal 2027 and fiscal 2028. That doubles the initial visibility of 1.0 billion dollars outlined when the custom processor was unveiled in March. Management had also kept the formal outlook at 1.0 billion dollars during the May earnings call, which triggered a 10% single-day stock decline at the time.

The company projects silicon business revenue of 1.0 billion dollars for fiscal year 2028. Longer term, Arm is targeting annual silicon revenue of 15.0 billion dollars by fiscal year 2031.

Arm shares closed at 243.98 dollars on 16 September, leaving the stock up 112% year-to-date. The shares had previously advanced 7% in a single day after the July earnings call. Despite those gains, the stock closed 45% below its peak of 452 dollars reached in June.