ARM Q3 Results – Datacenter Royalties Outpace Mobile

ARM Q3 dropped one chart that mattered: datacenter royalty revenue passed mobile for the first time.

Datacenter: $612M (+47% YoY). Mobile: $604M (+3% YoY). Gap is small, trajectory is the story. Datacenter has been growing 40-50%; mobile is essentially flat.

Why now

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

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