Arm Holdings plc reported a 22.4% increase in fiscal Q1 2027 revenue, reaching $1.29 billion, exceeding estimates by 1.8%. Royalty revenues climbed 22% to $715 million, as demand for Arm’s products surged, particularly among hyperscalers deploying Arm-based processors. The company expects $2 billion in demand for its upcoming AGI CPU, while facing challenges in scaling production.
NVIDIA Corporation experienced an 85% revenue growth year-over-year in fiscal Q1 2027, totaling $81.62 billion, with data center revenues reaching $75.2 billion, accounting for approximately 92% of total sales. The company anticipates Q2 revenues of around $91 billion, reflecting continued demand for AI infrastructure. NVIDIA’s strong cash flow positions it well to capitalize on the expanding AI market.
Both companies are poised to benefit from the growing AI infrastructure market, but while Arm is focusing on royalty growth and production challenges, NVIDIA’s integrated platform and robust cash generation provide a more compelling growth outlook, with a forecasted EPS growth of 93.3% for NVDA compared to 24.3% for ARM.
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