ARM has opened up a massive revenue frontier with the data center market, as based on a new report, the company has seen success in selling its chips to global tech giants.
ARM Manages to Make Strides In The Data Center Segment, Giving x86 Competitors a Tough Time
With the AI hype almost benefiting everyone who decided to capitalize on it, ARM is one of the more notable companies that has witnessed phenomenal progress in just a few years. The company was more popular in the mobile markets before entering the data center segment, and it did have some traction with Apple's M-series SoC, but that was the only revenue frontier ARM had opened up. But now, based on a report by Reuters, it is claimed that the chip firm has managed to increase DC customers by a whopping 14-fold in just four years, marking a massive accomplishment.
Interestingly, ARM has managed to double the number of applications running on ARM-based machines since 2021, and this shows that the firm has seen much larger traction with its chips in the market. In terms of ARM's primary customers, the company has sold millions of chips to the likes of Amazon, who designs its custom ARM-based processors, known as the Graviton series, that are offered to AWS customers.
Apart from Amazon, Google offers ARM-based chips to its customers through Ampere’s Altra processors, and a similar situation is the case with Microsoft. ARM has managed to take over the DC segment and has snatched away a pretty hefty market share from x86 alternatives from Intel and AMD. More importantly, ARM is a primary supplier to NVIDIA. The company powers Team Green's Grace CPU platform, which is the performance driver of the company's rack-scale solutions, and this shows that ARM has indeed secured the trust of several of its customers in the DC market.
ARM has also managed to make an impact on the PC segment in the past few years, as well, since the company saw the adoption of its chips with Qualcomm's Snapdragon X Elite SKUs, which posed a viable threat to the dominance of x86 in the market. It won't be wrong to say that ARM is making moves in the market, and with the potential launch of an AI PC chip with NVIDIA, the firm could very well be a threat to Intel and AMD's position in the computing markets.
About the author: Muhammad Zuhair is a hardware and technology reporter for Wccftech, specializing in the semiconductor industry and the complex interplay between technology, manufacturing, and geopolitics. His coverage focuses on the corporate strategies and technological roadmaps of industry giants like TSMC, NVIDIA, Samsung, and Intel. Zuhair's expertise lies in deconstructing complex topics such as fabrication nodes (e.g., 2nm process), the economic impact of policies like the CHIPS Act, and the strategic development of AI infrastructure from NVIDIA, AMD and Intel.
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