Server CPU Shipments to Grow Over 40 Percent by 2027
Increased AI inference demand is driving a structural shift toward ARM-based server hardware through 2027.
Updated on Oct. 25, 2026 in Semiconductors
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TrendForce projects that server CPU shipments will grow by 31% in 2026 and by over 40% in 2027. This growth is driven by increasing demand for AI inference and agentic AI services within global data centers.
Why it matters
The shift toward AI-heavy server architectures is accelerating a move away from traditional x86 dominance. This transition is forcing cloud operators to integrate specialized processors to support evolving CPU-to-GPU ratios.
The x86 architecture held nearly 90% of the server CPU market in 2025, but Arm-based designs are projected to reach 20% in 2026 and 30% by 2027. Meanwhile, AMD is estimated to capture 27% of the total server market share in 2026.
The players
AMD
A semiconductor company developing high-performance computing and data center processors, with their Venice series entering production.
A cloud and software operator currently utilizing its proprietary Axion server CPUs for high-volume deployments.
Microsoft
A cloud service and software provider that has moved its Cobalt 100 processors into mass production for internal data centers.
Intel
A primary supplier of x86 server chips currently facing shipment delays and capacity constraints.
TrendForce
A market intelligence firm providing data on semiconductor and server hardware supply chain trends.
The details
Cloud data center operators are reconfiguring server racks to adopt a 1:2 or 1:1 CPU-to-GPU or ASIC (Application-Specific Integrated Circuit — a custom chip designed for a specific task) ratio to optimize AI inference. This demand supports the mass production of processors like Google's Axion and Microsoft's Cobalt 100. The transition away from x86, the legacy instruction set architecture (a set of commands that define how a processor executes software), is accelerating as providers seek higher efficiency for agentic AI workloads.
Timeline
H2 2025: Server CPU demand began steady growth.
2026: Server CPU shipments projected to grow 31%.
H1 2027: AMD plans to launch new products.
2027: Server CPU shipments projected to grow 40%.
The Tech Race
This growth forecast reflects the industry's shift to a 1:1 CPU-to-GPU rack configuration, which fundamentally changes the competitive requirements for data center hardware. The race is now defined by the ability to scale specialized ARM and custom silicon architectures to meet the demands of agentic AI.
Cloud computing costs and latency for AI services will likely stabilize as major providers shift to more efficient, high-volume server CPU architectures. These changes will be felt most by enterprise users and developers who rely on high-scale inference platforms beginning in late 2026.
The takeaway
The server hardware market is effectively splitting between legacy x86 platforms and an rapidly expanding ARM-based sector. Watch for AMD’s product launch in the first half of 2027 to see if it successfully challenges the current dominance of proprietary silicon in cloud data centers.
Further reading
Track the latest hardware developments in our Semiconductors section.
Source note: This article includes information reported by EMSNow.
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