Arm Holdings: A Bold Move Into AI Chips And I'm Bullish

Arm Holdings plc is pivoting from licensing chip designs to selling its own AGI CPUs for AI data centers, targeting a larger share of AI infrastructure value. Partnerships with Meta, OpenAI, and TSMC validate ARM's AGI CPU launch, but also introduce strategic risks by competing with existing licensees. Management projects $15B annual AGI CPU revenue by 2031, driving total revenue to $25B and EPS to $9, which could rationalize today's high valuation.