Arm Projects 50% Data Center CPU Market Share by End of 2025

The UK-based chip designer accelerates growth with AI-driven demand and energy-efficient processors, challenging Intel and AMD dominance.

Arm Holdings expects to increase its data center CPU market share from 15% in 2024 to 50% by the end of 2025, fueled by AI demand and energy efficiency advantages.
The company's CPUs are widely used as 'host' chips in AI computing systems, including Nvidia's advanced AI platforms.
Arm's processors are gaining popularity among cloud computing firms like Amazon, Google, and Microsoft due to their lower power consumption compared to Intel and AMD chips.
Data center CPUs generate higher royalty rates for Arm, leveraging the company's intellectual property to secure more revenue.
Arm's entry into the data center market marks a significant challenge to the long-standing dominance of x86 architecture from Intel and AMD.