Arm Bets Big on Data Centers With $2B AI Chip Revenue Target
Arm doubles its sales forecast for its custom AGI data center chip, expecting $2 billion in revenue over two fiscal years.
Arm is going all-in on data centers. The chip design giant now expects its AGI CPU — a custom AI chip built for data center workloads — to pull in $2 billion in sales across FY2027 and FY2028. That's double the guidance Arm gave back in March 2026.
The company says data centers are on track to become its single biggest revenue driver. That's a significant shift for a company historically known for powering smartphones and embedded devices.
At least one major buyer beyond Meta is reportedly snapping up $1 billion worth of the new AGI chips. Arm isn't naming names, but billion-dollar orders tend to narrow the field considerably.
The revised forecast signals serious momentum. Arm isn't just licensing designs to other chipmakers anymore — it's building its own silicon and finding massive demand for it.