Arm reported fiscal first-quarter revenue of $1.29 billion, up 22%, and says AGI CPU demand now exceeds $2 billion, though locked-in supply covers only the initial $1 billion. Marvell posted record revenue of $2.739 billion, up 37%, with data center sales at 79% of the total. The article argues Arm's ready-made compute subsystems and AGI CPU could let hyperscalers skip some custom design work that Marvell sells, and Arm may accept thinner margins, with first-generation AGI CPU gross margin expected in the high 30% range, maybe low 40s, versus Marvell's 58.9% non-GAAP gross margin. Marvell's non-GAAP operating margin rose to 36.6% from 34.8%, while Arm trades at about 248 times earnings. Over the past month, Arm fell 36.94% and Marvell lost 14.8%.
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