ARM plans to increase its revenues sixfold, reaching $15 million per year from sales of its own processors

Arm enters the market of its own AI chips

British holding Arm announced this year the launch of its own artificial intelligence – an AGI processor developed in-house. This move contrasts with Intel’s strategy, which over recent years has tried to win competitors’ trust by offering them services to manufacture their own processors.

Financial targets
* Current revenue: In 2023 Arm earned about $4 billion (CNBC).

* Targets for 2031:
* Revenue – up to $25 billion.
* Earnings per share – $9.
* Expected share of sales from its own chips – 60% of total revenue.

According to management’s forecast, AGI chips could generate about $15 billion annually by the fifth year after launch. Chief Executive Rene Haas believes that demand for central processors in the agent AI space will grow fourfold and notes that this is a “conservative estimate.”

Marketing strategy
* The first proprietary chip will be sold with a net profit margin of around 50%.
* Arm plans to expand its sales market to significantly increase profits.
* Over the past 35 years, the company has licensed its technologies to third‑party manufacturers. Today Amazon, Google and Microsoft use Arm architecture in their server processors, but they are not required to switch to new chips from Arm itself.

Valuation
The exact price of AGI processors has not yet been disclosed, but industry analysts suggest that the cost will be measured in thousands of dollars. This could attract companies that want to move away from Intel or AMD chips but lack the resources for independent processor development.

Thus, Arm sets an ambitious goal – to become a supplier of its own AI chips and substantially change its revenue structure in the coming years.