Arm Holdings plc (NASDAQ:ARM) is emerging as the power-efficiency engine of the artificial intelligence boom.
The Cambridge, U.K.-based company is positioning its Neoverse platform at the center of a data-center shift toward "intelligence per watt.”
As hyperscalers race to scale AI without blowing through energy limits, Arm is on track to reach 50% market share among major hyperscalers in 2025.
Among the companies using Neoverse include Amazon.com, Inc (NASDAQ:AMZN) Amazon Web Services, Alphabet Inc (NASDAQ:GOOGL) Google, Microsoft Corp (NASDAQ:MSFT), Oracle Corp (NYSE:ORCL), and Meta Platforms, Inc (NASDAQ:META). Also, next-generation AI campuses like the Stargate project are anchoring their compute on Arm for power efficiency and scalability.
Also Read: Meta Taps Arm To Power AI Across Devices And The Cloud
To meet surging demand, Arm is expanding Neoverse with Nvidia Corp's (NASDAQ:NVDA) NVLink Fusion — the high-performance interconnect that powered Grace Hopper and Grace Blackwell systems.
Arm CEO Rene Haas said the collaboration brings Grace Blackwell-class performance to every partner building on Neoverse, while Nvidia CEO Jensen Huang called NVLink Fusion "the connective fabric of the AI era," unifying CPUs, GPUs, and accelerators at rack scale.
Earnings
Arm gained 14% year-to-date. On Nov. 5, the British chip designer reported a stronger-than-expected second quarter, sending shares higher by over 4% in after-hours trading.
The company posted earnings of 39 cents per share, topping the 33-cent consensus estimate, while revenue rose to $1.13 billion — ahead of forecasts and up from $844 million a year earlier. Growth continued across key business lines.
Royalty revenue climbed 21% to $620 million, and licensing and other revenue surged 56% to $515 million. Arm also reported an annualized contract value of $1.6 billion, a 28% increase year-over-year, reflecting sustained demand for its technology across cloud, AI, and edge markets.
Arm and Nvidia first delivered coherent CPU-GPU integration with Grace Hopper two years ago. Extending NVLink Fusion across the wider Neoverse ecosystem gives chipmakers flexibility to pair Arm compute with their preferred accelerators, improving bandwidth and energy efficiency while reducing integration time.
Arm is also enabling Neoverse with the latest AMBA CHI C2C protocol — invented by Arm — to ensure seamless interoperability with NVLink Fusion. By removing memory bottlenecks and increasing data flow between components, partners can build differentiated AI systems that scale to the needs of the new compute era.
Price Actions: ARM stock closed higher by 0.35% to $140.26 at Monday.
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