Arm, demand for AGI CPU doubles: expected revenues over $2 billion by 2028

The numbers from Arm's fourth quarter and the entire fiscal year 2026 confirm a significant acceleration on both the financial and strategic fronts, with the AGI CPU at the center of future growth narratives.

The fourth quarter generated revenues of $1.49 billion, bringing the annual total to $4.92 billion. This marks the third consecutive fiscal year of revenue growth exceeding 20% since Arm went public again.

On the royalty front, the company recorded a record annual revenue of $2.61 billion, with $671 million coming from Q4 alone. Growth is broad-based: smartphones, Edge AI, Physical AI, and Cloud AI all contribute positively, with datacenters more than doubling their royalties year-over-year.

The licensing segment reached $819 million in the fourth quarter alone, totaling $2.31 billion for the year.

It wasn't long ago that on March 24, 2026, during the “Arm Everywhere” event, the company announced the AGI CPU, its first processor designed, produced, and marketed directly. It is a solution specifically aimed at agentic artificial intelligence.

From a technical standpoint, AGI integrates up to 136 Arm Neoverse V3 cores, 2 MB of dedicated L2 cache per core, frequencies of up to 3.7 GHz, and memory latency of less than 100 nanoseconds. Arm claims that the chip offers more than double the rack performance compared to x86 platforms, with a potential reduction in AI datacenter Capex of up to $10 billion per gigawatt.

At the time of launch, Arm estimated about $1 billion in AGI CPU revenue. In just a few months, that figure has been revised upward: aggregate customer demand for the fiscal years 2027 and 2028 already exceeds $2 billion, more than double the initial projections.

Among the names that have already confirmed their intention to integrate the microchip into their systems are OpenAI, Cerebras, Positron, and Rebellions, all committed to pairing the chip with accelerator-based systems. Verda, a European AI cloud provider, has announced deployment for orchestrating agentic workloads. Additionally, AGI CPU-based systems are already orderable from OEMs like ASRock, Lenovo, Quanta, and Supermicro.

Alongside the new AGI direction, Arm reports that its market share in the CPU segment among major hyperscalers has reached 50%. Amazon, Microsoft, Google, and NVIDIA are already integrating Arm architecture-based CPUs as the core of their accelerated systems.

Arm emphasizes that its architecture is not limited to the datacenter. With a total of 350 billion chips shipped and over 22 million active developers, the Arm platform already covers a wide portion of the global computing ecosystem, from cloud to edge to physical systems. The declared goal is to extend AI to physical devices and infrastructure while maintaining a unified architecture and software ecosystem.