Arm CEO Rene Haas says confidence is rising for AGI CPU’s $2 billion revenue target

Arm Holdings CEO Rene Haas said Wednesday he is more confident than he was in July that the company’s new data center chip, dubbed the AGI CPU, can translate strong demand into enough supply to reach $2 billion in customer demand.

The focus has shifted from demand to execution, as chipmakers compete for limited manufacturing capacity during the AI boom.

Confidence improved from May to July to September

Haas told Jim Cramer on CNBC that Arm first outlined visibility to $2 billion in customer demand on its May earnings call. On the July call, management said its confidence in securing enough supply to achieve the $2 billion figure increased.

Speaking in September, Haas said his confidence is higher today than it was after the July earnings.

Supply constraints were the key investor question

Haas’ comments come as investors have largely centered on whether Arm can secure sufficient manufacturing capacity for its first in-house data center CPU. Demand for Arm’s technology has been described as strong, but supply execution has been the main variable.

The AGI CPU is also tied to a broader shift in Arm’s business model.

AGI CPU expands Arm beyond licensing

Arm has historically generated revenue by licensing chip designs to customers. The AGI CPU represents Arm’s move into selling a complete chip of its own, which makes manufacturing scale and delivery more central to revenue outcomes.

Arm disclosed the $2 billion visibility on its May earnings call, after previously outlining $1 billion when it announced its first custom CPU in March.

Stock reaction and current trading level

After Arm maintained its official $1 billion revenue outlook while working to secure supply for the additional demand, the stock fell 10%. In the session after the July earnings call, shares jumped more than 7% following management’s improved confidence.

Arm shares have held onto much of that gain but remain roughly 45% below their June high of $452.