Arm forecasts higher-than-expected revenue on surging AI data center demand
Arm Holdings forecast higher-than-expected revenue due to surging demand for its chip technology in AI data centers. The company expects quarterly revenue of $1.26 billion, above Wall Street estimates of $1.25 billion.
Arm Holdings forecast first-quarter revenue above Wall Street expectations, driven by higher adoption of its chip technology in artificial intelligence compute. The company expects quarterly revenue of $1.26 billion. Arm generates revenue by licensing its technology to companies such as Nvidia and Apple. Its designs power virtually every smartphone and are valued for consuming relatively little power, a key advantage for data center operators. Arm's CEO Rene Haas said the company is 'very bullish about this data center demand'. Arm has enough capacity secured to fulfill $1 billion of demand for its new AGI CPU, but has not yet secured it for the second billion dollars' worth of orders.
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