Arm chips now run more than half of hyperscaler servers, up from 15% in 2024

Arm Holdings says Arm-based processors now sit inside more than half the servers running at the world's leading hyperscalers. Two years ago, the company put that figure at just 15%. The chip designer dropped the number with its Q2 FYE27 earnings report on November 4, 2026, and it isn't calling 50% a finish line — Arm expects its hyperscaler share to blow past 60% by the end of calendar 2026.

The money followed the silicon. Arm booked record quarterly revenue of $1.44 billion, while data center royalties doubled compared with a year earlier. Arm and its partners also pushed out more than 10 billion Arm-based chips in a single quarter for the first time. Server chips are pricey parts, so a fleet-wide shift at the cloud giants hands Arm a revenue stream wired straight into the AI buildout.

The momentum is concentrated among cloud's heaviest hitters. Amazon Web Services, Google Cloud and Microsoft Azure have all built custom Arm-based CPUs, and platforms running NVIDIA's Arm-based chips are in the mix too. AWS offered the sharpest proof point: revenue commitments tied to its in-house Graviton processors jumped more than 20x year over year.

Power efficiency is the pitch doing the selling. Arm-based CPUs are winning work on both AI and ordinary general-purpose jobs, a combination that matters as data centers strain against energy limits. By designing their own chips on Arm's architecture, the cloud giants get a grip on performance, cost and power that buying off-the-shelf processors can't match.

Outside estimates point the same direction. IDC calculated that Arm-based servers pulled in roughly 45% of server market revenue across the first and second quarters of 2026, with AI infrastructure spending speeding the migration away from x86 systems. The two numbers aren't twins: Arm's 50%-plus claim covers top hyperscalers, while IDC's measure spans revenue across the broader market. Arm-based PCs, meanwhile, have climbed to about 20% of global PC shipments on the company's own figures.

One caveat is worth pinning down. That 50%-plus headline is Arm's own read on its position, and it applies to leading hyperscalers rather than the entire server market, where IDC's revenue estimate lands near 45%.