Arm has achieved approximately 50% market share of CPU compute among top hyperscalers in its fourth quarter, according to management, supported by deployments from Nvidia, Amazon, Microsoft, and Alphabet using Arm-based CPU architectures.
Arm is developing the Arm AGI CPU to sell chips directly rather than only licensing designs. Management expects $2 billion in demand across 2027 and 2028, though it is maintaining a $1 billion outlook due to supply chain constraints, and projects $15 billion in chip sales by 2031 generating $7.5 billion in gross profit.
The stock currently trades for 159 times analysts' earnings estimates, which the article describes as an outrageously high valuation—almost 18 times management's $9 earnings per share guidance for 2031.
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