Arm Holdings plc (NASDAQ:ARM) has affirmed its central position in the artificial intelligence ecosystem through its involvement in OpenAI‘s ambitious $100 billion Stargate AI infrastructure project, as revealed during the company’s third-quarter earnings call.
What Happened: CEO Rene Haas highlighted Arm’s expanding role in AI infrastructure, noting strong momentum in data center deployments alongside partners OpenAI, Oracle Corp. (NYSE:ORCL), and SoftBank Group (OTC:SFTBY).
“We are very excited about the future, whether it’s about the near-term execution of our strategies with v9 and CSS to all the opportunities that Stargate and Cristal intelligence bring us,” Haas said.
The company reported a record total revenue of $983 million, up 19% year-over-year, driven by increasing AI-related demand.
The Stargate project, set to begin with an 875-acre facility in Abilene, Texas, represents a significant validation of Arm’s architecture in large-scale AI infrastructure. The initial phase includes a 200-megawatt data center, with plans to expand to 1.2 gigawatts – enough power to serve 200,000 homes.
See Also: Elon Musk’s Lenders Cash In $5.5 Billion Thanks To Investor Demand For X Loans: Report
Why It Matters: The company’s involvement in Project DIGITS, a collaboration with NVIDIA Corp. (NASDAQ:NVDA), further demonstrates Arm’s growing influence in AI computing. The project combines Arm-based Grace CPUs with NVIDIA’s Blackwell GPUs to create what’s being marketed as the world’s smallest AI supercomputer.
Looking ahead, Arm expects continued growth, projecting fourth-quarter revenue between $1.175 billion and $1.275 billion.
Price Action: Arm Holdings PLC closed at $173.26 on Wednesday, rising 6.82% for the day. However, in after-hours trading, the stock dropped to $162.37, losing 6.29%. Despite the after-hours decline, Arm has surged 137.41% over the past year, according to data from Benzinga Pro.
Read Next:
Image Via Shutterstock
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
