ARM Q3 Results – Datacenter Royalties Outpace Mobile

ARM’s Q3 results landed with one chart that mattered: datacenter royalty revenue passed mobile for the first time.

Datacenter royalties: $612M (+47% YoY). Mobile royalties: $604M (+3% YoY). The gap is small, but the trajectory is the story. Datacenter has been growing at a 40-50% rate while mobile is essentially flat.

Why now

The Neoverse V2/V3 cores have hit broad adoption with AWS Graviton, Azure Cobalt and Google Axion all in volume. Each cycle of those chips ships in millions of units to data centers, and ARM collects royalty on every one.

EsportForge’s view: ARM is no longer a mobile company with a datacenter side bet. It is now a datacenter company with a mobile annuity. That changes the multiple.