Arm Sees ‘Explosion’ in CPU Demand on AI Amid Smartphone Slump
Arm CEO Rene Haas holds Arm’s AGI CPU chip during an event in San Francisco in March.
Photographer: David Paul Morris/BloombergArm Holdings Plc Chief Executive Officer Rene Haas said the company is experiencing an “explosion of demand” for its CPU architecture driven by AI workloads in data centers, with orders doubling to $2 billion in just five weeks.
Designing components such as central processing units for artificial intelligence functions is a bright spot for Arm as it confronts sluggishness in the smartphone industry. The stock slumped as much as 10% in intraday trading Thursday after Arm reported weak quarterly royalty revenue, denting a rally that more than doubled the shares through Wednesday.