Jabran Kundi

Sat, March 28, 2026 at 11:18 AM EDT 2 min read

Arm Holdings PLC (NASDAQ:ARM) is one of the 10 High Growth Mega Cap Stocks to Buy and Hold for Next 10 Years. On March 24, Arm Holdings PLC (NASDAQ:ARM) announced that it was introducing a new AI chip called the AGI CPU. The new chip is intended to meet the computing needs of agentic AI, a specific type of AI that can act as a virtual assistant, carrying out operations on behalf of users without requiring constant supervision or instructions.

In the past, ARM used to license its design to Nvidia and earn royalties on the sales of the chips. It is now changing the business model in a big way by building the chips itself. While this will unlock better margins, it will also require significant upfront investment. The company is working with Meta and Taiwan Semiconductor to bring this chip to market, with an expected launch later this year. On top of this, the firm is also working with server equipment manufacturers such as Quanta and Lenovo to deliver complete systems to its customers.

Arm Holdings PLC (NASDAQ:ARM) is a semiconductor design company that mainly licenses its chip designs to other companies. It was founded in 1990 and is owned by the SoftBank Group. Its corporate headquarters are in Cambridge, UK, and California, USA.

While we acknowledge the potential of ARM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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