Armv9: Higher Royalties Fuel Arm's $4B+ Revenue Surge

Arm's Armv9 architecture, unveiled four years ago, boasts higher royalty fees than its predecessors, significantly contributing to record-breaking revenue. In Q4 FY25, Arm surpassed $1 billion in quarterly revenue for the first time, reaching over $4 billion annually, with royalty revenue exceeding $2 billion. Smartphone chip royalties surged 30%, outpacing shipment growth. The server market also shows strong Armv9 adoption by major players like Nvidia, Google, and Microsoft. This success stems from Arm's leading position in AI cloud deployments and the growing demand for custom silicon solutions, driving license and royalty growth.