Bloomberg Tech Arm Warns of Phone Market Weakness
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May 7, 2026 
Rene Haas, CEO of Arm, leading growth in data-center CPUs and steering Arm into AGI hardware. He talks about smartphone-market weakness and booming AI data-center demand. He explains why CPUs matter for agentic AI. He outlines partnerships, system-level Arm AGI racks, supply plans and ambitious revenue targets.
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Arm Offsets Phone Slump With Data Center Surge
- Arm sees smartphone weakness driven by falling memory prices, but its premium-segment royalties cushion revenue exposure.
- Rene Haas highlighted data center growth doubled year-on-year and ARM AGI CPU demand doubled visible orders from $1bn to $2bn in five weeks.
Agentic AI Is Making CPUs Critical
- Agentic AI workloads are creating a new, CPU-centric bottleneck because agents need fast orchestration and scheduling only CPUs can provide.
- Haas said agentic queries drive demand for Arm IP and for Arm's own AGI CPU, not just GPUs.
Arm AGI CPU Packs Twice The Performance Per Watt
- Arm sells both IP and full ARM AGI CPU-based systems through partners, promising twice the performance per watt versus comparable x86 racks.
- Haas noted partnerships with Supermicro, Lenovo and ASRock to deliver 36kW air-cooled racks for easier data center deployment.