Rene Haas Says NVDA GPUs, GOOGL TPUs Validate ARM's AI Bet — 'Every AI Workload Is Going to Run Through Arm'

• Haas said the industry's largest AI infrastructure providers are increasingly adopting Arm-based CPUs alongside their AI accelerators, marking a shift away from traditional x86 processors.
• He pointed to Nvidia's Grace and upcoming Vera CPUs, which power the company's Grace Blackwell and Vera Rubin platforms, as well as Google's Axion processor.
• Haas also pushed back against concerns that the AI infrastructure buildout is excessive, arguing that demand for AI remains in its early stages and is far from peaking.

Arm Holdings (ARM) was in focus on Thursday after CEO Rene Haas doubled down on the company's long-term AI strategy, arguing that Nvidia Corp. (NVDA) and Alphabet Inc.'s (GOOG, GOOGL) chips validate Arm's growing role in the AI infrastructure stack.

During an interview with CNBC, Haas said that the shift away from x86 and toward Arm architecture in AI accelerated data centers is driving growth in the company’s revenue.

Arm’s American Depositary Receipts were up nearly 7% in Thursday morning’s trade.

Haas Touts NVDA, GOOGL’s Shift Away From x86

Haas said the industry's largest AI infrastructure providers are increasingly adopting Arm-based CPUs alongside their AI accelerators, marking a shift away from traditional x86 processors.

He pointed to Nvidia's Grace and upcoming Vera CPUs, which power the company's Grace Blackwell and Vera Rubin platforms, as well as Google's Axion processor, which connects to its in-house TPUs. Haas said the CPUs powering both Nvidia's GPU platforms and Google's TPU systems, built on the Arm architecture, underscore the company's growing role in AI infrastructure.

“When we look five and ten years out, we see every part of our business is going to be impacted by AI, and we believe every AI workload is gonna run through Arm,” he said.

Haas Dismisses AI Bubble Concerns

Haas also pushed back against concerns that the AI infrastructure buildout is excessive, arguing that demand for AI remains in its early stages and is far from peaking.

“People who are questioning whether the AI demand is a bubble or the AI demand tops out, it makes no sense to me,” he said.

He likened AI's evolution to the early days of the internet and even electricity, saying many parts of the U.S. and the world are only beginning to adopt the technology.

Haas acknowledged that while companies are still figuring out how to monetize AI, the current wave of investment reflects the early stages of a much broader, long-term transformation across industries.

ARM Reports Record Q1

Arm reported record first-quarter (Q1) results on Thursday, with revenue rising 22% year over year to $1.29 billion, driven by record licensing and royalty revenue.

The company said data center royalty revenue more than doubled from a year earlier, helped by growing adoption of its Armv9 architecture and Arm Compute Subsystems.

Arm also said that the customer demand for its Arm AGI CPU has exceeded $2 billion across fiscal 2027 and 2028, while shipments of Arm Neoverse cores surpassed 1.5 billion.

How Retail Traders Reacted To ARM Stock

Retail sentiment on Stocktwits around Arm Holdings was in the ‘bullish’ territory at the time of writing.

ARM ADR is up 115% year-to-date and 46% over the past 12 months. The iShares Semiconductor ETF (SOXX) is up 103% over the past 12 months, while the VanEck Semiconductor ETF (SMH) is up 81%.

The Invesco QQQ Trust (QQQ) is up 20% during this period.

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