Arm Holdings ARM shares are moving higher after the company reportedly announced that Meta has become its first customer for a new in-house chip project.

What To Know: According to Financial Times, this marks a major shift in Arm's business model, as it moves from licensing chip designs to producing its own processors, putting it in potential competition with major clients like Qualcomm and Nvidia.

Arm plans to launch its first in-house chip by this summer, targeting large data centers. Production will be outsourced, likely to TSMC. The project aligns with SoftBank founder Masayoshi Son's broader AI infrastructure vision, including the $500 billion Stargate initiative with OpenAI and other partners. Arm is also reportedly close to acquiring Ampere, a chip designer backed by Oracle, for around $6.5 billion, which would further strengthen its move into chip production.

The company has more than doubled in value since its 2023 Nasdaq listing, benefiting from surging AI-driven demand. Meta's decision to use Arm-based server chips signals a shift away from traditional suppliers like Intel and AMD.

ARM Price Action: Arm Holdings shares were up 4.56% at $162.58 at the time of writing, according to Benzinga pro.

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