Arm Holdings raises server CPU revenue target to over $1 billion by fiscal 2028 amid a projected $100 billion data center CPU market.
Arm Holdings (NASDAQ: ARM) shares surged following strong fiscal first-quarter earnings and optimistic commentary on its data center central processing unit (CPU) opportunity. The company now expects over $1 billion in server CPU revenue by fiscal 2028, up from its prior target of $1 billion between fiscal 2027 and 2028.
The company cited a growing backlog and a projected $100 billion data center CPU market by 2031, where it aims to capture a 15% share. Competitors Nvidia and Advanced Micro Devices forecast the market could reach $220 billion. Arm also announced plans to develop its own physical chips for the first time, introducing its Arm Artificial General Intelligence (AGI) CPU in March.
Despite the rally, shares remain nearly 50% below spring highs after more than doubling in 2026. The stock’s volatility reflects investor uncertainty about its long-term positioning in the competitive CPU market.