Arm Holdings Plc, which provides the most widely used technology in computing processors, gave a bullish revenue forecast, helped by increasing interest in designing chips to run AI data centres.

Fiscal third-quarter revenue will be about $1.23 billion, the company said Wednesday in a statement. Profit will be 41 cents a share, excluding certain items. Those targets compare with analysts’ average estimates of 35 cents a share on sales of $1.1 billion.

The outlook signals that Arm is beginning to see increasing rewards from investment in new technology aimed at winning a place in data centres that are being built to support artificial intelligence computing. Under Chief Executive Officer Rene Haas, the UK-based company has been transforming itself into a provider of more complete designs,

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