The server processor market is about to go through a huge change. According to the latest data from TrendForce, worldwide CPU shipments for servers will grow more than 40% year over year in 2027.

All of this is driven by the demand for artificial intelligence, especially the rise of AI agents and the need to run AI tasks much faster and more efficiently in data centers.

Until recently, the usual ratio in a server was one processor for every eight graphics chips or accelerators. But with new workflows, like agentic AI, that ratio is changing in a big way, to one to two, or even one to one. This means servers will need much more computing power from the CPU, so the demand for them is going to grow very fast.

In this new situation, the total dominance that x86 has always had is starting to shake. On one side, Intel is falling a little behind because of some production and packaging problems, which limit its ability to deliver orders on time and lower its market share. On the other side, AMD is taking advantage of the moment with a stronger plan, building up its position with stable platforms and new launches planned for next year.

But the big surprise comes from the options based on ARM architecture. Giants like Amazon with its Graviton processors, Google with Axion, Microsoft with Cobalt, and Nvidia itself with its Grace and Vera chips are betting big on their own designs. This is no accident, since they want better energy efficiency and performance tuned for their own clouds. While ARM barely passed 10% of the market in 2025, forecasts say it will reach close to 30% by 2027.

The industry is changing fast. The total control of x86 now faces a mixed market where custom chips and ARM architecture are here to stay.