No Matter Who Wins the Smartphone and AI Chip Races, ARM Stock Still Benefits Jabran Kundi Sat, July 25, 2026 at 12:30 PM PDT 5 min read ARM QCOM 005930.KS 2454.TW AAPL Research firm IDC published its first-quarter AI infrastructure numbers this week, and one line stood out. Arm (ARM) has overtaken x86 as the biggest platform in AI servers. Accelerated server value on Arm climbed to $53 billion in the quarter, from below $30 billion as recently as the third quarter of 2025. IDC also raised its full-year forecast for AI infrastructure spending to $497 billion. What the report really shows is who gets paid. Arm licenses its architecture and takes a royalty payment on every chip shipped using it. For Arm, this means that the war between chipmakers is largely a war between its own customers. Apple (AAPL), Qualcomm (QCOM), Samsung (SMSN.L.IX), and MediaTek all build their smartphone chips on Arm. In fiscal 2026, ended March 31, Arm posted record revenue of $4.92 billion, up 23%, with royalty revenue of $2.61 billion. Data center royalties more than doubled year-on-year (YoY) in the fourth quarter. The newer Armv9 architecture carries roughly double the royalty rate of the previous generation. So, Arm collects more per chip at the same time as more chips ship. More News from Barchart Alphabet Is Getting 'Ambitious' With AI. Don't Get Ambitious With GOOGL Stock. Dear SpaceX Stock Fans, Mark Your Calendars for August 6 Elon Musk Just Revealed a Quiet Win for Tesla's AI Ambitions Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. Arm's AGI CPU Puts It in Competition With Its Own Licensees Arm unveiled its AGI data center CPU on March 24. This is the company's first chip of its own rather than a design licensed out to someone else. Meta (META) is the lead partner in this, with OpenAI, Cloudflare (NET), and SAP (SAP) among the early customers. CEO Rene Haas said the chip could bring in $15 billion a year by 2031, and the stock rose 16% the very next day. On the May earnings call, Haas said customer demand committed across fiscal 2027 and 2028 had passed $2 billion, more than double the figure given at launch. The constraint now is manufacturing capacity, with first production revenue not expected until the final quarter of fiscal 2027. The bigger question is what this does to Arm's relationships. Amazon (AMZN), Alphabet (GOOG) (GOOGL), Microsoft (MSFT), and Nvidia (NVDA) all license Arm architecture for their own data center chips, and each now pays royalties to a company selling one of its own. About Arm Holdings Stock Arm Holdings develops and licenses chip designs and related software for GPUs, CPUs, and AI processors. Semiconductor companies use the company's technology to build chips for cloud computing, smartphones, consumer electronics, automotive, and other connected devices. Rather than manufacturing chips, ARM licenses its technology to semiconductor companies and device makers around the...
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