Key Facts on AMD and Arm Holdings’ AI CPU Strategies
Advanced Micro Devices (NASDAQ: AMD) reported a year-over-year revenue increase of 38%, reaching $10.3 billion in Q1, with data center revenue surging 57% to $5.8 billion, driven by demand for EPYC CPUs. The company anticipates the total addressable market for server CPUs to grow over 35% annually, exceeding $120 billion by 2030. AMD’s expected CPU revenue growth for Q2 is over 70% year-over-year.
Meanwhile, Arm Holdings (NASDAQ: ARM) achieved a 23% revenue growth to $4.92 billion for fiscal 2026, earning about $2.61 billion from royalty revenue. The company is also gaining traction in AI data centers with its Arm AGI CPU, which claims more than $2 billion in customer demand for fiscal 2027 and fiscal 2028, supported by over 50 companies.
While AMD is better positioned for immediate AI infrastructure exposure, benefitting from strong demand in cloud and enterprise sectors, Arm offers a longer-term growth narrative through licensing and royalties. Both companies showcase distinct paths to capitalizing on the AI CPU market.
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