Arm Data Center Business Surges on Nvidia Support

Arm Holdings' data center business is surging, and Nvidia's support is key to this growth. In a recent earnings call, Arm reported a more than doubling of its data-center royalty revenue from the year-earlier period, with cumulative Neoverse shipments surpassing 1.5 billion cores.

The company's adoption curve is accelerating as artificial intelligence changes the economics of computing. This development is particularly important because Nvidia, the dominant AI accelerator platform provider, is helping move the data-center CPU market toward Arm.

Jensen Huang's roadmaps for Grace and Vera validate Arm as the CPU architecture surrounding those GPUs, extending the Arm software ecosystem across an expanding portion of the AI factory.