ARM's stock surged over 15% on May 21, 2026, reaching a historic high of $259, driven by its entry into the chip manufacturing market with the launch of its AGI CPU. This marks a significant shift from ARM's traditional business model of licensing chip designs. The AGI CPU, designed for AI data centers, has attracted major clients like Meta and OpenAI, signaling ARM's strategic pivot to capitalize on the growing demand for CPUs in AI applications. The market's enthusiasm is further fueled by a Bernstein analyst's report, which projects a fourfold expansion in the server CPU market by 2030, positioning ARM as a key beneficiary. ARM's recent earnings call revealed a doubling of committed demand for its AGI CPU to $2 billion for FY2027-2028, highlighting the rapid adoption of its new product. This transformation has led to a collective revaluation of ARM by Wall Street, with several firms raising their price targets, reflecting confidence in ARM's potential as an AI infrastructure platform.