Arm Holdings Gains as Agentic AI Drives CPU Demand

Sands Capital Global Growth Fund added Arm Holdings to its portfolio in Q2 2026, citing rising CPU demand from agentic AI as a key growth driver. The fund expects Arm's CPU royalties to increase from about 10 percent of revenue in 2026 to over 30 percent by 2031. Arm shares closed at $252.09 on September 4, 2026, down 5.88 percent over the past month but up 81.18 percent over 52 weeks, with a market capitalization of $269.23 billion. The fund argues CPUs are better suited than GPUs for agentic workflows like scheduling and memory management. Sands Capital's portfolio returned 22.2 percent in Q2 2026, outperforming the MSCI All Country World Index's 14.9 percent. The fund also noted SoftBank's majority ownership could provide additional upside through broader AI adoption across its investment ecosystem.