US Stock Market Move | Self-developed AGI CPU chip received a more than 15% surge in the opening stock price by Meta adopting Arm Holdings (ARM.US).

On Wednesday, Arm Holdings (ARM.US) opened with a huge increase of over 15%, rising by 42% for the year to date, now trading at $155.27. In terms of news, Arm Holdings is set to begin selling its own chips for the first time, with an expected annual revenue of around $15 billion over the next five years. Arm announced at an event in San Francisco on Tuesday that Meta Platforms (META.US) will be the first major customer for its AGI CPU chip. Arm stated that the product will have up to 136 cores (a measure of processing power) and consume 300 watts. The chips will be produced by Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR (TSM.US). As part of this strategic adjustment, Arm has set ambitious sales targets for the coming years. The UK-based company expects that the revenue from the new chip business will surpass its current revenue from focusing on intellectual property sales. Arm stated that this will help achieve a total sales of around $25 billion in five years, which is five times more than the current amount. The company predicts that the intellectual property business will also continue to grow, reaching around $10 billion at that time. During this period, it is estimated that earnings per share will reach $9. Analysts estimate that earnings per share for the current fiscal year (excluding certain items) will be $1.75.