Arm Says "Our Confidence In Achieving Up To $2B In Arm AGI CPU Revenue Over FY27–FY28 Has Increased Over The Last 90 Days, Supported By Additional Supply And Customer Mix. We Remain Focused On Expanding Capacity To Meet Growing Customer Demand"

Arm Is Gaining Share Across the Data Center

 

Arm continues to gain share across the data center, driven by growing demand for performance and power efficiency as AI infrastructure scales. Data center royalties doubled year over year, and Arm-based server market share at the top hyperscalers more than tripled—from 15% in calendar 2024 to more than 50% in calendar 2025. Based on current ramps across Google Axion, AWS Graviton, Microsoft Cobalt, and NVIDIA platforms, we expect that share to exceed 60% by the end of calendar 2026.

 

As AI moves from prompt-driven applications to persistent agents, power efficient CPUs are becoming increasingly critical to data center performance. Agents execute software, call tools and coordinate work between accelerator invocations, increasing demand for both Arm-based processors developed by our partners and Arm AGI CPU.

 

Our partners continue to expand their deployment of Arm-based infrastructure. Amazon recently reported that Graviton revenue commitments increased more than 20x year over year, Microsoft highlighted strong adoption of Arm-based Cobalt CPUs, and Google identified Arm-based Axion as a critical component of its AI infrastructure. NVIDIA continues to expand its Arm-based Vera CPU platform for agentic AI, now generally available on Oracle Cloud Infrastructure (OCI) and deployed in production with OpenAI.

 

During the quarter, we introduced Neoverse CSS N4 enabling partners to develop differentiated silicon for CPUs, networking, infrastructure management, and security. Delivering up to 2x performance per socket and 25% better performance per watt than the prior generation, CSS N4 enables more compute within constrained data centers.

 

Alongside our growing IP business, Arm AGI CPU expands our opportunity by delivering Arm-designed silicon directly to customers. Since launching in March, demand has continued to strengthen, with purchase orders secured from multiple customers extending through calendar 2027 and first commercial deliveries on track for fiscal Q4’27. Oracle Cloud Infrastructure plans to offer Arm AGI CPU instances in 2027, bringing Arm-designed and partner-designed processors together on a common platform and software ecosystem.

 

Our confidence in achieving up to $2 billion in Arm AGI CPU revenue over FY27–28 has increased over the last 90 days, supported by additional supply and customer mix. We remain focused on expanding capacity to meet growing customer demand.

 

Power availability is becoming a critical constraint on data center growth, with Morgan Stanley recently projecting a 38GW global power shortfall through 2028. Arm is helping customers address this constraint by delivering more useful compute from the power already available. At the Open Compute Project summit, independent testing by Signal65 showed Arm AGI CPU delivering approximately 2x the performance per rack versus AMD EPYC 9755, which could reduce the projected global power shortfall by half.

 

As agentic AI scales, infrastructure must also become more secure. NVIDIA's recently announced OpenShell architecture uses Arm-based CPUs to execute AI workloads and Arm-based BlueField-4 Data Processing Units (DPUs) to independently enforce security and isolation. With Arm compute on both sides of the trust boundary, this demonstrates the expanding role of the Arm platform in enabling agentic AI at scale.