Arm Sees 14-Fold Growth In Data Center Customers Since 2021 Amid Strategic Expansion To PC Market: Report

Arm Holdings (NASDAQ:ARM) has witnessed a significant surge in the number of customers using its chips in data centers, a 14-fold increase since 2021. This growth is attributed to the company’s strategic expansion into the PC market and the rising demand for AI computing.

What Happened: The number of customers using Arm-based chips in data centers has soared to 70,000, a 14-fold increase since 2021, the company told Reuters. This growth has been under the leadership of CEO Rene Haas.

Arm, a chip technology company, has made substantial inroads in the data center chip market, largely driven by the surge in generative artificial intelligence computing. The company also reported a 12-fold increase in startups using Arm chips since 2021.

Despite headwinds in the chip industry—especially in the PC and mobile sectors—Arm maintains a strong outlook. However, the company opted not to issue annual financial guidance, citing ongoing trade uncertainties.

Arm is advancing on multiple fronts as it seeks to compete with the computing dominance of designs from Advanced Micro Devices (NASDAQ:AMD) and Intel (NASDAQ:INTC). Since 2021, the number of applications running on Arm-based machines has nearly doubled to 9 million.

Why It Matters: Cloud computing behemoths such as Amazon (NASDAQ:AMZN), Alphabet’s Google (NASDAQ:GOOGL), and Microsoft (NASDAQ:MSFT) have played a pivotal role in Arm’s recent success in the data center market, creating their own Arm chips for their infrastructure.

Arm’s success is closely tied to the rise of AI computing. The company’s stock has surged 15.46% year-to-date, outperforming the tech-heavy NASDAQ 100 Index, which has gained nearly 7% during the same period.

Meanwhile, Arm’s CEO Rene Haas has been vocal about the potential impact of U.S. sanctions on China. Haas warned that such sanctions could hamper technological advancements and affect consumers and companies.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.