Arm's AI Strategy and Chip Market Outlook (with Steven Engel)

Nvidia's new PC chip with 20 Arm CPU cores is 'right product, right time' for agentic AI workloads. Arm could reach 50% PC market share by end of decade. New server chip business responding to customer demand, on track for $15B revenue target. Memory chip shortage may persist but demand for AI compute is unprecedented and touches every industry.

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Arm Holdings 3.0
Information Technology
Renee Haas 9.0

Arm's AI Strategy and Chip Market Outlook (with Steven Engel)

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AI compute requirement is quite significant to anything before it... touches every single industry... everyone on the planet will have some interaction with AI

Nvidia moving into PC space with RTX Spark built on Arm platform - how important is this?

Steven Engel
Renee Haas

Right product, right time - 20 Arm CPU cores inside that chip, most in any laptop SOC. Combined with Blackwell RTX GPU, most performative GPU for agentic AI.

As we move towards heavy workloads on PCs running agents, this is the perfect chip at the perfect time.
Battery life concern with high-performance chip?

Steven Engel
Renee Haas

Arm's hallmark is power efficiency - in every smartphone. Previous Arm laptops get 18-21 hours battery life.
What PC market share can Arm achieve?

Steven Engel
Renee Haas

Arm is only supplier doing all platforms (Mac OS, Windows, Chrome, Linux). Could see 50% by end of decade.
Why move into server chips with your own name?

Steven Engel
Renee Haas

Customers asked us to finish off the chip - in some cases 90%+ of IP is Arm's. Market was underserved for those who can't build their own.

Meta was launch partner. Companies like Cloudflare, SAP need Arm server chips but lack capability of Nvidia, Amazon, Google, Microsoft.
Revenue target for this business?

Steven Engel
Renee Haas

On track for $15B revenue by end of decade, hoping to hit sooner. Demand stronger than anticipated.

Combination of all things AI plus great product - 2x performance of X86 at same power.
Over-investment bubble in data centers? Memory chip crunch?

Steven Engel
Renee Haas

AI compute requirement is unprecedented - touches every industry, everyone on the planet. Knowledge work is $30T market, largely untapped.

Memory may not be short until 2030 but demand could continue much longer than historically seen. Need shared risk models - asking public companies to take all risk is hard to sustain.
Smartphone market expected to contract - impact on Arm?

Steven Engel
Renee Haas

Not that impacted - most business in high end, successfully increasing royalty rates so mobile phone business going up while units go down.

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