ARM Holdings has indicated that demand for its new series of computer chips is expected to be strong, though the company has maintained its revenue forecast for these chips as it works to increase supply.

The UK-based semiconductor firm previously stated in March that it anticipated selling $1 billion worth of chips by early 2028. On Wednesday, the company reported that its demand forecast has doubled to $2 billion, but it also noted that current supply is insufficient to meet the new order volume.

CEO Rene Haas explained during an analyst call, "The figure we discussed at the end of March was that existing supply could support $1 billion in demand. This includes memory, wafers, packaging, and access to testing equipment. For the $2 billion demand level, we are now securing supply to support that."

He added, "The company is working around the clock to ensure we can provide the right solutions for our customers." ARM still expects revenue from these chips to begin being recognized in the fourth quarter of the current fiscal year.

Executives noted on the call that operating expenses are projected to increase by several percentage points quarter-over-quarter throughout the year, partly due to building out the supply chain. The company anticipates that by the end of the fiscal year, revenue growth will outpace the increase in operating expenses.

ARM Holdings' stock rose nearly 28% at market close but fell 7.2% in after-hours trading to $220.18 following the earnings call.