Chip stocks lifted by Arm’s barn-burner revenue projection hike, Meta deal
Chip stocks rose early after chip design firm Arm Holdings announced a massive upgrade to its long-term forecasts for sales at an investor event Tuesday evening, following earlier news that it’s partnering with Meta to create “a new class of data center chips” — the company projected the new chip alone will generate $15 billion in annual revenue by 2031.
Nvidia, Intel, Advanced Micro Devices, ON Semiconductor, Microchip Technology, and NXP Semiconductors all got a bump from Arm’s rosy revisions to its outlook.
Why? Basically, the speech that Arm CEO Rene Haas delivered at its Arm Everywhere event in San Francisco supports the idea that “agentic AI is expanding the TAM for server CPUs which should drive server unit growth upside,” as HSBC semiconductor stock analyst Frank Lee put it in a note Wednesday.
In other words, the rise of AI will equate to a permanent step up in chip demand from AI data center servers — also known as an increase in the total addressable market, or TAM. So, you know, higher chip stock prices.
Nvidia, Intel, Advanced Micro Devices, ON Semiconductor, Microchip Technology, and NXP Semiconductors all got a bump from Arm’s rosy revisions to its outlook.
Why? Basically, the speech that Arm CEO Rene Haas delivered at its Arm Everywhere event in San Francisco supports the idea that “agentic AI is expanding the TAM for server CPUs which should drive server unit growth upside,” as HSBC semiconductor stock analyst Frank Lee put it in a note Wednesday.
In other words, the rise of AI will equate to a permanent step up in chip demand from AI data center servers — also known as an increase in the total addressable market, or TAM. So, you know, higher chip stock prices.
