So, here's a fun thing that happens in tech: a company that designs the blueprints for other people's chips decides to start baking its own cake. Arm Holdings Plc (ARM) shares are having a very good Tuesday evening after the company announced it's getting into the chip-making business itself—and it's got some seriously ambitious numbers attached to the plan.

At an event in San Francisco, Arm said it will start selling its own AGI (Artificial General Intelligence) CPU chips. The first big name on the customer list? Meta Platforms Inc (META). It's a bit like an architect who's been drawing up plans for everyone else's houses suddenly deciding to build and sell a few mansions of their own.

According to a Bloomberg report, Arm isn't just dipping a toe in the water. The company expects this new venture to generate roughly $15 billion in annual sales within five years. To put that in perspective, that figure is expected to surpass the sales from Arm's current core business of licensing its chip designs.

When you add it all up—the new chip sales plus the existing licensing revenue—Arm is forecasting total annual sales of $25 billion within five years. On the bottom line, the company expects earnings to grow to approximately $9 per share in that timeframe. That's not a side project; that's a fundamental shift in the business model.

So, what's this chip all about? Arm says it's developing the new processor, which will pack up to 136 cores and draw 300 watts of power, specifically in response to customer demand. The manufacturing will be handled by the world's leading chipmaker, Taiwan Semiconductor Manufacturing Co (TSM).

The market's initial reaction? A big thumbs up. Arm's stock was up 7.04% in after-hours trading Tuesday, changing hands at $144.96 at the time of publication according to market data. Investors seem to be betting that Arm's blueprint for its own future is a good one.