(Image credit: Arm)

When Arm introduced its first 'physical' AGI processors in late March, the company expressed optimism about their adoption by select customers. In less than two months, the company attained around $2 billion in commitments for its AGI CPU over the next several years, smashing the company's expectations two-fold. But despite this heightened interest, Arm's market share will remain in the low single digits even if it manages to ship $2 billion worth of CPUs in two years, Mercury Research told Tom's Hardware .

"Customer response to the Arm AGI CPU is already strong, with more than $2 billion of customer demand across FYE27 and FYE28 – more than double what was stated at Arm Everywhere," Arm declared in its earnings press release.

Single-digit percent of the server market

While $100M worth of AGI CPUs in Q4 2026 and over $2B of demand for the next two fiscal years looks like a lot of money (especially given the fact that Arm's current annual revenue is $2.61B), Arm's presence in the…