Arm Stock (ARM) Jumps on News of First In-House Microchip and This ‘Mag 7’ Customer

FomoAnxiety · 2026-03-24T21:47:34+00:00

Arm Holdings' stock rose after announcing its first in-house microchip, the AGI CPU, which Meta Platforms will purchase for AI data centers. This marks a significant shift for Arm, historically a licensor of chip designs.

FomoAnxiety

2026-03-24 21:47:34

Abstract generation in progress

The stock of Arm Holdings ARM -1.84% ▼ is rising on March 24 after the company announced plans to produce its first in-house microchip, and that Meta Platforms META -1.56% ▼ has agreed to buy the new processor.

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For most of its 35-year history, Arm Holdings has licensed its instruction sets to the world’s biggest chipmakers and collected royalties on every processor made with its designs. But now , the British technology company is moving to make microchips and processors of its own.

Arm CEO Rene Haas has unveiled the company’s first in-house microchip called the “AGI CPU.” It’s a long-awaited change for the company and comes amid rising competition in the artificial intelligence (AI) chip space. Meta Platforms has already signed on to buy Arm’s new microchips as it builds out its AI data centers and plans to spend $135 billion in capital expenditures this year.

Insatiable Chip Demand

In February of this year, Meta announced that it was buying huge amounts of microchips from both Nvidia and Advanced Micro Devices AMD +0.51% ▲ . However, the technology giant has a seemingly insatiable demand for processors as it develops its AI capabilities through data centers.

Arm Holdings spent $71 million and about 18 months building three new lab rooms at its campus in Austin, Texas that now employs more than 1,000 people. Inside, engineers have developed the new in-house microchips, which have been put through multiple rounds of testing.

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