Qualcomm Bets on Cars and Data Centers to Offset Shrinking Apple Business

Meta Platforms launched Muse, an autonomous personal AI agent that shot to the top of the Apple App Store within a week, and the agentic AI shift is driving gains for Arm Holdings and Advanced Micro Devices. In March, Meta and Arm announced a large-scale partnership to co-develop Arm AGI CPU and multiple generations of specialized silicon for Meta's data centers, and Arm CEO Rene Haas said Arm already has $2 billion of customer demand for its new AGI CPU. SoftBank, which owns roughly 90% of Arm's shares outstanding, said it would raise Arm's loan facility to $25 billion from $20 billion, and Arm shares rose more than 10% in early trading. Meta partnered with AMD to optimize Muse Glimmer, an open-source model designed to run locally on computers, and demand for agentic AI has pushed prices for AMD server chips up about 40%. AMD CEO Lisa Su said the server CPU market could exceed $120 billion by the end of the decade, a 35% CAGR, and AMD shares broke out to all-time highs as the company crossed the $1 trillion market cap landmark for the first time.

Credo Technology Group Holding Ltd launched a new family of 224G-based ZeroFlap optical transceivers, extending its optical architecture to 1.6T port speeds. The new transceivers combine Credo's 224G-per-lane optical digital signal processor with the Kfir200 silicon photonics PIC and its latest-generation PILOT diagnostics platform, and the family includes 2xDR4, 2xFR4 and DR8 configurations supporting AI scale-out interconnect architectures at 1.6T port speeds. The launch matters because management expects more than $600 million in optical revenues in fiscal 2027, with ZeroFlap optics, silicon photonics PICs and optical DSPs each expected to contribute more than $100 million. Credo's May acquisition of DustPhotonics brought silicon photonics capabilities in-house, and the company recorded its first silicon photonics revenues in the fiscal first quarter while its optical digital signal processor business generated record revenues during the period. Management expects additional fiscal 2027 customer ramps across both 800G and 1.6T products involving hyperscalers and NeoCloud operators, as well as its first 1.6T optical DSP revenues later in fiscal 2027, though GAAP research and development expense rose 118% year over year to $114.5 million in the fiscal first quarter and results remain sensitive to deployment timing.