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StocksMedium•25 February 2026•

1 min read

Arm Data Center Royalties Double as Amazon's Graviton Chips See Surging Demand

Key Facts

1Amazon is seeing explosive demand for its Arm-based Graviton chips.

2Arm's data center royalty revenue doubled over the past year.

Arm Holdings has reported a significant milestone as its data center royalty revenue doubled over the past year. This growth is primarily driven by the explosive demand for Amazon's custom-designed Graviton processors, which are built on Arm architecture. Amazon Web Services (AWS) continues to scale its use of these chips to offer superior performance and cost-efficiency for its cloud customers. The shift toward custom silicon highlights a strategic move by cloud giants to reduce reliance on traditional third-party chipmakers. For Arm, this diversification beyond the mobile market solidifies its position in the high-growth data center and AI infrastructure segments. Analysts view this trend as a strong fundamental indicator for the long-term growth prospects of both Amazon and Arm.