By Danny Vena, CPA
Publication Date: 2026-03-27 07:45:00
When it comes to artificial intelligence (AI), chipmaker Nvidia (NVDA 4.14%) is the reigning champ. The company’s focus has evolved in recent years, pivoting from rendering lifelike images in video games to providing the computational horsepower needed to advance AI.
The next generation of the AI revolution is upon us, as agentic AI and robotics promise to consume even more resources as models and systems become increasingly complex and power-hungry. Thus far, Nvidia’s graphics processing units (GPUs) have been the gold standard for AI applications, but it’s part of a larger equation, and users are looking high and low for solutions to the power consumption problem.
Arm Holdings (ARM 1.45%) has been on the cutting edge of chip design for more than 35 years, developing and licensing the designs that underpin a wide range of semiconductors. Just this week, the company announced it will produce physical silicon for the first time in its history.
Image source: The Motley Fool.
CPUs are “central” to the advancement of AI
While GPUs make all the headlines, central processing units (CPUs) are an equally important part of the equation. While GPUs provide the computational horsepower to accelerate AI processing, CPUs still serve as the conductor and brain of the operation, performing sequential tasks such as preparing data and managing the workflow.
Arm’s chip designs are already the industry standard for CPUs, but Arm AGI CPU marks the first time the company has ventured into…
