Shares of Arm increased by 6% following a report on Thursday that the company is creating its own chip and has secured Meta as an early customer.
The Financial Times revealed that Arm is developing a product intended to compete with many of its clients. The semiconductor firm licenses its technology, known as an instruction set, along with more complex core designs, allowing customers to create their own chips.
Arm has earned a reputation as the “Switzerland” of chip technology companies by maintaining neutrality among competing chip manufacturers. Its clients include major companies such as Apple, Google, Nvidia, Amazon, Microsoft, Qualcomm, and Intel.
Meta plans to invest up to $65 billion in capital expenditures focused on artificial intelligence development this year. While a large portion of this budget is allocated to Nvidia-based systems, Meta has also acquired other chips and announced its own internal chip development.
According to the report, Arm’s chip will function as a central processor for servers, rather than a graphics processor typically used for demanding AI tasks.
In 2020, Nvidia attempted to acquire Arm from Softbank for $40 billion, but regulators blocked the deal due to Arm’s significant position in the chip market. Arm went public in 2023 and currently has a market capitalisation exceeding $173 billion.
So far in 2025, Arm shares have risen nearly 29%, as the company is viewed as essential for AI systems. Company executives informed investors that they aim to sell more advanced technology to current customers to boost revenue.
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