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2mo ago

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

The AI surge and power-efficient Neoverse platform drive Arm's rapid growth, challenging Intel and AMD in the server market.

A smartphone with a displayed Arm Ltd logo is placed on a computer motherboard in this illustration taken March 6, 2023. REUTERS/Dado Ruvic/Illustration/ File Photo
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Overview

  • Arm Holdings expects its data center CPU market share to jump from 15% in 2024 to 50% by the end of 2025, fueled by the AI boom.
  • The company's Neoverse platform is positioned as the leader in power efficiency, a key requirement for AI data centers.
  • Major cloud providers like Amazon, Google, and Microsoft are increasingly adopting Arm-based CPUs for their AI and server operations.
  • SoftBank, Arm's parent company, is bolstering its server market strategy with the acquisition of Ampere Computing, a designer of Arm-based server processors.
  • Arm's revenue model benefits from higher royalties on data center chips, which use more of its intellectual property compared to less complex devices.