Arm shares rise on report that Meta will buy its first chip

Core Insights - Arm shares increased by 5% following reports of developing its own chip and securing Meta as a customer [1] - Arm is creating a new product that will compete with its existing customers, moving beyond its traditional licensing model [2] - Arm has a reputation as a neutral player in the chip industry, serving major clients like Apple, Google, and Microsoft [3] Company Developments - Meta plans to spend up to $65 billion on capital expenditures for AI development, including purchasing chips from various suppliers [4] - Arm's new chip will serve as a central processor for servers, distinct from graphics processors used for heavy AI workloads [4] - Arm went public in 2023 with a market cap exceeding$173 billion, and its shares have risen nearly 29% in 2025 due to its role in AI systems [5] Market Opportunities - Arm's CEO highlighted significant planned data center spending from major companies: Google ($75 billion), Microsoft ($80 billion), and Meta ($60 billion) [6] - The Stargate initiative, which aims to invest up to$500 billion in AI infrastructure for OpenAI, presents additional opportunities for Arm [6]