Arm Holdings Plc (NASDAQ:ARM) shares are surging in Tuesday’s after-hours session following reports that the company is targeting $15 billion in annual sales from its new in-house chip.

ARM Provides Aggressive Sales Targets For New Chip

Arm Holdings announced at an event in San Francisco on Tuesday that it will begin selling its own AGI CPU chips, with Meta Platforms Inc (NASDAQ:META) slated to be the first major customer.

According to a Bloomberg report, Arm expects the new chip to generate approximately $15 billion annually within five years, surpassing sales from current operations.

When combined with sales from the company’s existing business, Arm expects to achieve $25 billion in annual sales within the next five years, while earnings are expected to grow to approximately $9 per share.

Arm’s new chip, which will have up to 136 cores and draw 300 watts of electricity, is being developed in response to customer demand, the company said. The report indicates that Taiwan Semiconductor Manufacturing Co (NYSE:TSM) will produce the chips for Arm.

ARM Shares Surge After The Bell

ARM Price Action: Arm Holdings shares were up 7.04% in after-hours Tuesday, trading at $144.96 at the time of publication, according to Benzinga Pro.

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