What Will the New Partnership Between Arm Holdings and Nvidia Bring?

Arm Holdings and Nvidia Join Forces in AI Infrastructure

In November 2025, Arm Holdings and Nvidia announced an expanded partnership aimed at integrating NVLink Fusion technology into Arm's Neoverse platform. This collaboration aims to enhance the efficiency and performance of AI data center infrastructure for cloud providers.

The primary goal of the partnership is to accelerate the adoption of specialized AI infrastructure by supporting the widespread use of Arm among leading companies such as Amazon, Microsoft, Oracle, Google, and Meta Platforms. This highlights Arm's efforts to solidify its position in the AI-centric data center market.

The partnership with Nvidia and the enhanced Neoverse platform could support Arm's royalty growth expectations and market expansion narrative. However, this development does not change the potential exposure to short-term royalty ramp issues and customer self-sufficiency risks.

Specifically, the increasing design work being brought in-house by hyperscaler customers presents a business risk that could challenge sustainable royalty flows. New collaborations such as Arm's integration of Nvidia's NVLink Fusion into the Neoverse platform aim to address this situation.

Arm's forecast for 2028 includes $7.4 billion in revenue and $2.3 billion in profit, based on an annual revenue growth rate of 21.5%. This represents an increase of $1.6 billion from the current $699 million in profits.

Additionally, some analysts predict that Arm could achieve $8.6 billion in revenue by 2028. However, they caution that increasing customer independence could threaten long-term growth. It is essential for investors to consider these developments when evaluating risks and opportunities.