Arm’s data center customers rose fourteenfold since 2021, and the apps operating on the company’s platform increased twofold.

Semiconductor and software major Arm Holdings Plc (ARM) has reportedly seen a major surge in adoption of its chip technology in data centers. 

A Reuters report stated that Arm’s data center customers reached 70,000 –  a 14-fold increase since 2021. The U.K.-based semiconductor firm has been making significant inroads in markets beyond mobile, including Personal Computers (PCs) and cloud infrastructure.

Following the report, Arm stock inched higher by 0.8% in Wednesday’s premarket.

Under Chief Executive Rene Haas, the company has capitalized on the growing demand for generative AI, which has significantly fueled its expansion in the data center sector. 

Since 2021, Arm has seen a 12-fold jump in the number of AI-driven startups adopting its chip architecture.

The company has contended with strong rivals in the high-performance computing market, especially from x86 chipmakers like Intel Corp.(INTC) and Advanced Micro Devices Inc.(AMD). 

Despite the competition, its power-efficient architecture seems to have gained traction with both developers and major cloud platforms. Arm's chips are increasingly being viewed as a smart solution for smartphones and large-scale data workloads due to their performance efficiency and reduced energy consumption.

Although demand in legacy areas such as mobile and PC chips has slowed, Arm's efforts to grow in the data center sector have gained momentum through collaborations with major technology firms amid the surge in AI-based applications. 

The report noted that major tech companies, including Amazon.com Inc. (AMZN), Alphabet Inc. (GOOGL), and Microsoft Corp. (MSFT), have developed proprietary Arm-powered processors for their cloud systems, thereby strengthening Arm’s presence in the server market.

In addition to broader hardware adoption, Arm has also made progress on the software front. Since 2021, the number of apps operating on Arm-based platforms has reportedly increased to 9 million, nearly double the previous total. Over the same period, its worldwide developer base has expanded by 50%, reaching 22 million. 

The company is expected to release its first-quarter (Q1) fiscal 2026 earnings results on July 30. On Stocktwits, retail sentiment toward Arm remained in ‘neutral’ territory with ‘normal’ message volume levels.

Arm Holdings stock has added over 19% in 2025 and has lost over 18% in the last 12 months.

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