Arm Sees Over $1 Billion Server CPU Revenue by 2028 as Backlog Tops $2 Billion
Updated
Updated · Yahoo Finance · Aug 2
Arm Sees Over $1 Billion Server CPU Revenue by 2028 as Backlog Tops $2 Billion
3 articles · Updated · Yahoo Finance · Aug 2
Summary
Arm said it is now more confident of generating more than $1 billion in server CPU revenue in fiscal 2028 after backlog grew past $2 billion.
Management tied that outlook to improved supply-chain conditions and secured manufacturing capacity, strengthening its push into self-designed data-center CPUs launched in March.
Fiscal first-quarter revenue rose 22% to $1.29 billion, with license revenue up 23% to $574 million and royalty revenue up 22% to $715 million.
Data-center royalties doubled again as hyperscalers ramped Arm-based server chips, while DPU, SmartNIC and Armv9 smartphone demand helped offset broader device-market weakness.
The forecast underscores Arm's bid to capture a larger share of a server CPU market it sees reaching $100 billion by 2031, after years focused mainly on chip IP.
With data center revenue surging, could lingering memory bottlenecks and software migration hurdles suddenly derail Arm's massive server CPU ambitions?
As hyperscalers rapidly adopt Arm infrastructure, will the company's $2 billion backlog actually justify its highly volatile 2026 stock valuation?