TradingKey - In US pre-market trading on September 17, Arm Holdings (ARM) gained over 5%. Chief Executive Officer Rene Haas recently stated that the company's confidence in converting customer demand for AGI CPUs into revenue continues to grow.

[Source: TradingView]

Haas was interviewed by CNBC "Mad Money" host Jim Cramer in San Francisco on September 16. He stated that Arm disclosed approximately $2 billion in AGI CPU demand visibility in May, and its confidence in achieving this scale had already increased by the time of its July earnings release; entering September, he is even more confident than in July.

[Source: CNBC]

According to Arm's latest financial materials, customer demand for AGI CPUs in fiscal 2027 and 2028 has exceeded $2 billion. The company has secured memory, wafer, packaging, and testing resources required to support approximately $1 billion in business opportunities and continues to expand capacity with manufacturing and supply chain partners. Haas stated that confidence in realizing the $2 billion scale has further strengthened since July.

The AGI CPU is Arm's first data center CPU designed in-house and sold as a finished chip. Meta is a key partner and co-developer, with the two companies advancing multi-generational product collaboration; customers such as Cloudflare, OpenAI, SAP, and SK Telecom will also deploy the processor.

Arm expects the AGI CPU to begin contributing to revenue starting in the fourth quarter of fiscal 2027. According to the long-term financial model released by management, revenue from the silicon business will be small in fiscal 2027, is expected to reach about $1 billion in fiscal 2028, and is projected to reach about $15 billion in annual revenue by fiscal 2031. Subsequent growth will depend on capacity expansion, customer deployment, and product delivery progress.

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