<div id="readability-page-1">Market share jump: Arm's server CPU share rose to 17.7% in Q1 from 11.5% a year ago, taking ground from Intel alongside AMD. AI-driven demand: Hyperscaler investments and power-efficient architecture are fueling Arm's adoption for AI and data center workloads. Investor optimism: Analyst price targets have surged, but wafer and memory supply constraints could slow growth.</div>

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<p>Arm's server CPU market share increased to 17.7% in Q1 from 11.5% a year ago, gaining ground from Intel and AMD. The rise is driven by AI demand and investments in power-efficient architecture. Analysts have raised price targets, but growth may be hindered by wafer and memory supply constraints.</p>

- Arm's server CPU market share increased to 17.7% in Q1, up from 11.5% a year earlier, gaining share from Intel and AMD.  
- The rise in adoption is driven by hyperscaler investments and the advantages of power-efficient architecture for AI and data center workloads.  
- While investor optimism has spiked with higher analyst price targets, supply constraints in wafers and memory may hinder future growth.

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Arm gains server CPU share as analysts lift targets