Arm Holdings says its chips now power over half of hyperscaler servers

Arm Holdings says its chips now run more than half of the servers at the world’s largest cloud providers. Two years ago, that figure was 15%.

The disclosure came with Arm’s Q2 FYE27 earnings report, released on November 4, 2026. For a company long associated with the phone in your pocket, it marks a meaningful change of address: the data center.

The numbers behind the claim

According to Arm, Arm-based chips now power over 50% of servers at leading hyperscalers. In calendar 2024, Arm put its share at just 15%.

Arm is not treating 50% as a ceiling. The company projects its share at top hyperscalers will exceed 60% by the end of calendar 2026, citing ongoing demand from major cloud players.

The financials moved in the same direction. Arm posted record quarterly revenue of $1.44 billion, and its data center royalties doubled year over year.

Arm and its partners also shipped more than 10 billion Arm-based chips in a single quarter for the first time.

Who is driving the shift

The growth is concentrated among the biggest names in cloud computing. Amazon Web Services, Google Cloud and Microsoft Azure have all leaned into custom Arm-based CPUs, along with platforms built on NVIDIA’s Arm-based chips.

AWS offers the clearest single data point. The company reported over 20x year-over-year revenue commitments tied to its Graviton processors, its in-house Arm-based chip line.

The main selling point is power efficiency. Arm-based CPUs are being adopted for both artificial intelligence and general-purpose workloads.

Independent data points in a similar direction. IDC reported that Arm-based servers captured approximately 45% of server market revenue across the first and second quarters of 2026, with heavy spending on AI infrastructure accelerating the adoption of non-x86 systems.

The two figures measure different things. Arm’s 50%-plus claim covers servers at top hyperscalers, while IDC’s figure tracks revenue across the broader market.

From phones and PCs to the server rack

Arm-based PCs now account for approximately 20% of global PC shipments, according to the company’s figures.

Cloud giants design their own chips around Arm’s architecture, which gives them control over performance, cost and power in ways that buying off-the-shelf processors does not.

What this means

For Arm, the most important number may be the doubling in data center royalties. Server chips are high-value parts, and a sustained shift in hyperscaler fleets gives Arm a revenue stream tied directly to the AI infrastructure buildout.

There are caveats worth keeping in view. The headline 50% figure is Arm’s own characterization of its position, and it applies to top hyperscalers rather than the whole server market, where IDC’s revenue estimate sits at approximately 45%.