Arm Holdings says its chips now power more than 50% of servers operated by the largest cloud providers, up from 15% in 2024. The company expects its share to exceed 60% by the end of 2026, supported by demand from AWS, Google Cloud and Microsoft Azure. In the second quarter of fiscal 2027, Arm generated record quarterly revenue of $1.44 billion, while data center royalties doubled year over year. More than 10 billion Arm-based chips were also shipped in a single quarter for the first time, as IDC estimated that Arm-based servers accounted for roughly 45% of global server market revenue in the first half of 2026. Adoption for artificial intelligence and general-purpose workloads is being driven by power efficiency, allowing cloud providers to exert greater control over performance, costs and electricity consumption.
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