Rene Haas

Haas says data center buildout is happening at unprecedented speed and the industry must do better at winning over local communities and officials.

We've never seen a build out of data centers from an infrastructure standpoint at the speed that we've seen recently and all driven by huge demand for compute. And I think it means as an industry, we've just got to get better at getting communities on board, uh local officials on board, uh in terms of building out these large projects.

Haas says Stargate continues strongly with no retreat, and compute demand exceeds supply amid build constraints.

No, not at all. I mean the start the Stargate initiative continues in a very, very strong way. Uh, but data centers are hard to build. Uh, there's a lot of people that are required, uh, there's permitting, infrastructure, uh materials, memory, wafers, chips. Uh and right now, what we're seeing, and I think you've heard this from most of the CEOs you've talked to, uh demand uh for compute exceeds supply.

Haas says Arm AGI CPU orders have exceeded $1B with line of sight to $2B, driven by agentic workload demand.

when we talked about the arm AGI CPU back in March, uh, we talked about a billion dollars of orders and uh, and hoping for more. And then incrementally, we've not only exceeded that $1 billion number, but now we have line of sight to two billion dollars. And that's really driven by demand for agentic workloads, which are CPU bound, CPU driven.

Haas predicts Arm's data center business will surpass its smartphone business next year.

next year, our data center business including our AGI CPU, will be bigger than our business for smartphones. And people didn't think that was possible a few years ago.

Haas is skeptical about space data centers, saying they are unlikely within five years and possible only on a 10-year horizon once power becomes the main constraint.

Uh do I think we'll see data centers in space in two years? No. Three years? No. Five years, probably not. 10 years, maybe so.

Rene Haas says the recent tech selloff reflects short-term post-midterm thinking that ignores AI's large long-term economic potential.

Haas said the recent tech selloff reflects short-term thinking that follows the US midterm elections. In his view, that thinking overlooks the large long-term economic potential of artificial intelligence.

Haas called the post-midterms tech selloff very short-term thinking that ignores AI's longer-term economic thesis.

"The short-term blitz that happened in terms of the election, and people talking about spending, etc., etc.," Haas says on CNBC. "To me, I look at that as very, very short-term thinking."

Haas said intelligence as a commodity is nearly certain to drive GDP growth across the economy.

He says intelligence as a commodity is near-certain to drive GDP growth across the economy.

Haas said Arm is poised to reach 60% data-center share by year-end and its new CPU should benefit from AI agent adoption, with Meta as chief customer.

Haas says the company posted a record second quarter and is poised to exit the year with a 60% market share in the data-center market. The company's new CPU offering should benefit from growing adoption of AI agents like Meta's Muse, he says, adding that Meta is Arm's chief customer for the CPU.

Haas says Arm is highly confident its new Arm AGI CPU will generate $2 billion next year, making data center bigger than smartphones for Arm.

we now have very high confidence in reaching $2 billion in revenue. Just from this product next year, and the result of this will be that the data center business for Arm will become bigger than smartphones.

Haas says Arm's data center share rose from 15% in 2024 to 50% in 2025 and should reach 60% by year-end.

We have gained significant market share in data centers. We had 15% in 2024. 50% in 2025. We think we will reach 60% by the end of this year.

Haas dismisses short-term election and spending worries, arguing intelligence as a commodity will drive huge long-term GDP growth.

In the long term, it is hard to deny that intelligence as a commodity will provide huge GDP growth across all sectors.

Haas argues agentic AI workloads run on CPUs and Arm's energy-efficient processor is well suited, with Meta a major customer.

When all these agents have to plan, track, do all sorts of checks, determine what needs to be done, all this tokenization work is work for the processor. The Arm Aegis processor, because it is extremely energy efficient, is great for this type of task.

Haas said confidence in reaching up to $2 billion of Arm AGI CPU revenue across fiscal 2027-2028 has grown thanks to added supply and customer mix.

Our confidence in achieving up to $2 billion of revenue in Arm AGI CPU across fiscal 2027 and 2028 has increased over the last 90 days, supported by additional supply and customer mix.

Haas expects Arm's share among top hyperscalers to exceed 60% by end of 2026, driven by custom CPU ramps and NVIDIA platforms.

Based upon expected ramps across Google Axion, AWS Graviton, Microsoft Cobalt, and NVIDIA platforms, we now expect that share to exceed 60% by the end of calendar 2026.

Haas argues agentic AI workloads are CPU-bound, which will drive higher core counts and CPU demand benefiting Arm.

What is obvious is that the agentic demands on AI jobs are CPU-bound, and the more agentic workloads that run, that is going to need more CPUs. I think that's what's going to end up driving these higher core count devices, which I think will be very good for us

Haas says Arm's power-efficient compute helps address the projected 38 GW data center power shortfall.

Morgan Stanley projects a 38 GW global data center power shortfall through 2028. Arm is helping customers address this constraint by delivering more useful compute from the power already available.

Haas warns industry supply will be tight and says Arm is working hard to secure supply for very large demand.

I think supply for the industry is going to be tight, and as Jason mentioned, we'll talk a bit more about our future outlook in upcoming quarters. But we are going to be working very, very hard to secure the supply that we need for the expanded demand because we think it's very, very, very large.

Haas notes memory price increases but sees pricing headroom on larger, higher-core-count chips.

memory pricing has obviously increased a lot since we announced the Arm AGI CPU. ... I think it is fair to say that there's probably some pricing elasticity that we could potentially exercise on these larger chips and the chips that have higher core counts.

Haas says the CPU market opportunity is far larger than the $60B consensus, citing $100B by 2030 and possibly $200B+.

when we did the Arm Everywhere day in March, the conventional wisdom was the market was a $60 billion market and was not going to be growing all that much. When we did our calculations, we felt differently, and we talked about a number that day of $100 billion by 2030. I think that number has been increased by various folks. I think Lisa may have even said $200 billion or more.

Haas expects triple-digit data center royalty growth for years as head-node CPUs shift from x86 to Arm.

Google has already announced the conversion of x86 to Axion, connecting to TPU version 8. To Jason's point, this is why we have a high degree of confidence on data center royalties growing triple digits over the next number of years.

Haas indicates an 18-24 month cadence for follow-on CPUs and says Arm designs for rack-level performance, including networking and I/O.

you can think about this market goes at about an 18- to 24-month cadence in terms of production ramps. ... When we think about developing these products, we're thinking about rack system performance.

Haas expects $2 billion in sales of Arm's own CPUs in fiscal 2027 and 2028, with data centers becoming a growing share of revenue.

Chief Executive Rene Haas said the company expects $2 billion in sales of its own CPUs in fiscal 2027 and 2028, stressing that the data center business will account for a growing share of revenue.

Rene Haas says Arm is seeing a huge pickup in demand for all technology related to the datacentre space.

We’re just seeing huge pickup for all technology around the datacentre space,

Haas says Arm now views its $2 billion AGI CPU sales target for fiscal 2027-2028 as very achievable, having secured supply with TSMC and others.

We think the two (billion) is now very achievable,

Haas said Arm is constrained by supply and could do more with additional supply, while expressing strong confidence in reaching its goal.

Arm Chief Executive Rene Haas said: "If we had more supply, we could do more. We feel strongly confident about achieving that goal."

Rene Haas (with CFO Jason Child) says AI is driving unprecedented compute demand, with Arm's IP business and new silicon business, led by Arm AGI CPU, both growing rapidly.

AI is driving unprecedented demand for compute across the cloud, devices and autonomous systems, with Arm being the compute platform of choice. Our business is now driven by two areas, both of which are showing rapid growth: The IP business, where partners increase their investment in Arm technology and deploy record numbers of Arm-based silicon, and our new silicon business, where demand for Arm AGI CPU is extremely strong,

Arm's top executives say Arm keeps gaining data center share, with hyperscaler server share rising from 15% in 2024 to over 50% in 2025 on performance and power-efficiency demand.

Arm continues to gain share across the data center, driven by growing demand for performance and power efficiency as AI infrastructure scales. Data center royalties doubled year over year, and Arm-based server market share at the top hyperscalers more than tripled—from 15% in calendar 2024 to more than 50% in calendar 2025,

Arm's executives expect its hyperscaler server share to exceed 60% by end of 2026 based on ramps across Google, AWS, Microsoft and NVIDIA platforms.

Based on current ramps across Google Axion, AWS Graviton, Microsoft Cobalt, and NVIDIA platforms, we expect that share to exceed 60% by the end of calendar 2026,

Rene Haas expects data center CPUs to move toward 256 or even 512 cores, which plays to Arm's multi-core strengths.

Arm CEO Rene Haas said the industry will likely move toward 256-core or even 512-core designs in the future, and multi-core architecture is exactly Arm's strength.

Original (zh)

Arm CEO Rene Haas 表示，未來行業很可能轉向 256 核心甚至 512 核心的設計，多核心架構恰恰是 Arm 的優勢。

Rene Haas says data center CPUs will likely move to 256- or 512-core designs, which plays to Arm's strength in high core counts.

Arm CEO Rene Haas pointed out that the industry will likely move toward designs with 256 or even 512 cores, and high core counts are exactly Arm's strength.

Original (zh)

Arm CEO Rene Haas指出，行业很可能转向256核心甚至512核心的设计，高核心数正是Arm的优势所在。

He says Arm's robotics manifesto aims to build an industry-wide common understanding of the problem and calls for collaboration on a single robotics capability framework, rather than offering a finished solution.

And the reason we're presenting that to the world is that we want to get a common understanding of the problem statement. We're not bringing a solution. What we're bringing is a problem statement for the industry to work together on.