technology
Arm Maintains $1B AGI CPU Revenue Outlook Despite Claiming $2B in Customer Demand
Arm Holdings reported $2 billion in customer demand for its AGI CPU across fiscal 2027 and 2028, double the figure from March. CEO Rene Haas told CNBC he is confident the company will obtain sufficient supply from TSMC despite industry-wide constraints. Shares fell 10 percent Thursday after the company maintained its $1 billion revenue outlook.
May 7, 12:44 PM·2m read1 source
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Arm CEO Rene Haas said he was confident the company would secure sufficient supply of its new CPUs to meet $2 billion in customer demand for the AGI CPU across fiscal 2027 and fiscal 2028. Haas gave the reassurance in an interview with Jim Cramer on CNBC on Thursday, one day after Arm released its shareholder letter.
The $2 billion demand figure is double what Arm laid out in March when it announced the AGI CPU chip.
Arm's fiscal 2027 started in April 2026. Haas described the demand as firm, sustaining and very robust. "This is not perishable demand, to be clear," Haas said.
Agentic AI puts a huge amount of pressure on the CPU to do all the work around orchestration, scheduling, and the management of these agents. " Haas added that while Arm is securing supply for the additional demand, "the demand is not going away. " He noted that these chips take a while to design and get through the entire pipeline.
Arm has been working with TSMC partners for months if not years. TSMC is the world's most advanced third-party chipmaker. Nvidia, Advanced Micro Devices, Broadcom, Amazon and Apple are all customers of TSMC.
Apple said last week it is facing supply constraints on its compute systems called SoCs. Arm CFO Jason Child said on the earnings call that Arm was maintaining its official outlook of $1 billion in AGI CPU revenue over the next two fiscal years while pursuing supply chain capacity. Arm expects the first revenues from production AGI CPU chip sales to land in the fourth quarter of fiscal 2027.
