NVIDIA is not the only company that has benefited from the AI wave, and Arm CPUs have taken a quarter of the server market in the second quarter, according to the latest report from Dell'Oro Group. Dell'Oro analyst Baron Fung said it is growing much more than 15% of its market share a year ago.
Foreign media The Register pointed out that the main force in promoting this trend is mainly because NVIDIA adopts Grace-Blackwell aircraft-level computing platforms, such as GB200 and GB300 NVL72.
Fung pointed out that a year ago, Arm's server market share was almost entirely driven by cloud-developed chips such as AWS Graviton. Now the scale of Grace CPUs can be compared with cloud-developed GPUs.
Although Arm's growth performance in data centers is strong, its market share of 25% is still lower than the 50% target set by Arm's head of foundational architecture Mohamed Awad for the end of 2025. The report pointed out that it is expected that Arm's market share will still be expected to further increase as more chip design companies launch server CPUs in the future.
NVIDIA has begun to develop a new generation of Arm architecture CPU "Vera", which adopts self-developed cores; at the same time, Qualcomm and Fujitsu are also developing or updating Arm server chips, and both have passed the certification of NVLink Fusion technology, which means that in the future, Superchip architecture versions based on different CPUs may appear, not only NVIDIA's own processors.
Arm executive Rene Haas expects that by 2029, half of Windows PCs will be driven by Arm chips.
According to Dell’Oro data, the AI expansion cycle continued to push up the server and memory components market in the second quarter, with an annual growth rate of 44%, and is expected to grow by another 46% in 2025.
At the same time, with AI computing sets moving towards Ethernet, the sales of SmartNIC (data processing unit) and DPU (data processing unit) almost doubled compared to last year. Fung also pointed out that custom AI ASIC shipments have reached a comparable scale to GPUs, but GPUs still account for the bulk of accelerator revenue.
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