By Justin Pope
Publication Date: 2026-04-02 07:45:00
Amazon, Apple, and Nvidia are among the largest, richest, and most powerful tech companies on Earth.
It’s hard to properly emphasize just how much these companies depend on Arm Holdings (ARM +2.50%) for its proprietary instruction set architecture. They literally cannot build chips without Arm licensing, not without walking away from an ecosystem that they’ve spent years wading deeper into.
It makes Arm an indispensable tech player as artificial intelligence (AI) hits its stride and new technologies, such as humanoid robotics, loom on the horizon. Plus, Arm just announced a game-changing move that could completely alter its business over the next five to 10 years.
Here is why the growth stock could soar over the long term.
Image source: The Motley Fool.
First, the skinny on Arm’s big announcement
Language sits at the core of how people interact, and the same is surprisingly true of technology. Arm is the leader in developing instruction set architecture (ISA), which enables computer processors to communicate with and run software.
Central processing units (CPUs) serve as the brains of almost every computer and electronic device. Arm specializes in CPU architecture, and until recently, the company has made money entirely from royalties and licensing fees it charges customers when they build chips with its designs.
But now, Arm is actually entering the same market as its customers. It recently unveiled its first-ever production chip, a CPU designed to manage agentic AI…