Sands Capital Management, LLC - Technology Innovators on Arm Holdings
Thesis
Arm was added to capture a potential inflection in CPU demand driven by agentic AI. Agentic workloads rely on CPUs for scheduling, memory management, tool execution, and orchestration, even when GPUs remain central to model inference and training. Sands sees Arm's efficient architecture and broad ecosystem as differentiated exposure to this bottleneck. A shift toward more CPU-intensive AI architectures could materially expand royalty growth.
“AMD and Arm provide exposure to supplier diversity, open standards, and more efficient compute architectures”
Key risks
- Execution risk as AI infrastructure architectures evolve