Arm revenues topped $1 billion in a quarter for the first time in its history.
“It marked a record breaking close to a strong year for Arm, driven by strong demand for power efficient AI compute from Cloud to Edge,” said Rene Haas, ARM’s CEO (pictured).
For the full year, Arm’s revenue topped $4 billion and royalty revenue surpassed $2 billion also a first.
“We delivered record royalty of $670 million this quarter, reflecting the growing value of every chip shipped with ARM inside.”
Licensing revenue hit an all-time high of $634,000,000 driven by new deals, including a multi-year AI partnership.
“Our royalty growth is broad based, comes from all major markets, data centre, automotive, smartphones, and IoT, showing the strength of our diversification strategy. ARM is now increasingly the first choice for AI cloud deployments. We expect up to 50% of new server chips at hyperscalers to be ARM based this year. ARM NVIDIA’s Grace Blackwell, ARM v nine is now in full production,” said Haas
Arm’s smartphone royalties jumped 30% year on year, far outpacing the modest 2% growth in shipments, proof, says Arm of a rising value per device.
Added Haas: “We launched the first Arm V9 Edge AI platform, combining Cortex A320 and Ethos U85 NPU to run billion parameter models, adopted by leaders like Infineon, NXP, Renesas, Qualcomm, and STM Microelectronics. GM and NVIDIA announced a collaboration on ARM based drive AGX platforms for next generation vehicles.
“Our compute subsystems are now shipping volume, boosting both mobile and Cloud royalty revenue. We also signed our first automotive CSS license with a global EV leader, enabling custom silicon for next gen vehicles. Our common CPU architecture from car to Cloud enables OEMs to deliver Cloud features to vehicles. On the software front, we now support over 22,000,000 developers, the largest such community in the world. Clariety AI, our core AI software layer, has now surpassed 8,000,000,000 cumulative installs across ARM based devices.”
For Q1 Arm expects revenue between $1 billion and $1.1 billion. At the midpoint this represents revenue growth of 12% year on year.
