Arm Holdings Stock Soars As Company Targets $15 Billion In Annual Sales From New In-House Chip

Arm Holdings Plc shares are surging in Tuesday’s after-hours session following reports that the company is targeting $15 billion in annual sales from its new in-house chip.

Arm Holdings announced at an event in San Francisco on Tuesday that it will begin selling its own AGI CPU chips, with Meta Platforms Inc slated to be the first major customer.

Don't Miss:

This AI Helps Fortune 1000 Brands Avoid Costly Ad Mistakes — See Why Investors Are Paying Attention

This Energy Storage Company Already Has $185M in Contracts—Shares Are Still Available

According to a Bloomberg report, Arm expects the new chip to generate approximately $15 billion annually within five years, surpassing sales from current operations.

When combined with sales from the company’s existing business, Arm expects to achieve $25 billion in annual sales within the next five years, while earnings are expected to grow to approximately $9 per share.

Arm’s new chip, which will have up to 136 cores and draw 300 watts of electricity, is being developed in response to customer demand, the company said. The report indicates that Taiwan Semiconductor Manufacturing Co will produce the chips for Arm.

Image: Shutterstock.com

Read Next: 

This Startup Thinks It Can Reinvent the Wheel — Literally

1.5 Million Users Are Already Working Inside This AI Platform — Investors Can Still Get In

UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets.

Get the latest stock analysis from Benzinga:

APPLE (AAPL): Free Stock Analysis Report

TESLA (TSLA): Free Stock Analysis Report

This article Arm Holdings Stock Soars As Company Targets $15 Billion In Annual Sales From New In-House Chip originally appeared on Benzinga.com