Arm Says Its Share of Top Hyperscaler Server Market Tops 50%

Arm Holdings said its chips powered more than half of servers at top hyperscalers, as data-center royalties doubled year over year in its fiscal 2027 second quarter.

Arm put its share at 15% in calendar 2024 and expects it to exceed 60% by the end of calendar 2026. The figure covers the server market at top hyperscalers, not the entire server market.

The company’s fiscal 2027 second-quarter results, released Nov. 4, included record second-quarter revenue of $1.44 billion. AWS, Google Cloud and Microsoft Azure have leaned into custom Arm-based CPUs.

The results followed TokenPost’s preview of Arm’s fiscal 2027 second-quarter results, which highlighted data-center royalty growth and smartphone-market pressure.