Third Generation Arm Neoverse

By Patrick Moorhead - February 26, 2024

The Six Five team discusses Third Generation Arm Neoverse.

If you are interested in watching the full episode you can check it out here.

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Transcript:

Patrick Moorhead: So it’s been interesting. And the numbers are hard to pin down, I think quite frankly because of China. But Arm went from close to 0% market share in servers, to between, I’ll say 15% and 20% in about a decade. Now, the first eight years were the hardest, but now that we see the proliferation of Arm in the data center and custom design from the top CSP, and yes, I’m expecting Google to come out with an Arm based server SOC, there’s even numbers that say Arm has 40% server share in China, which is just staggering. So they’ve gone from no respect to very respected.

And most of the growth, if you followed Arm’s earnings, was because of the data center. So essentially what they came out with was a couple of things. First of all, two new Neoverse CSS products. And I stand corrected, I was corrected that CSS is not a white glove service. It is a product. Now, that product is not just off the shelf. Every customer takes in different types of capability. In fact, Microsoft Cobalt, Azure’s new, or actually overall Microsoft Arm based SOC was cited as a CSS design, which I think is pretty impressive.

The company also flashed some gen AI Neoverse performance. Again, the whole CPU. Doing it on the CPU. The industry’s dirty little secret is that holistically, more AI is done on the CPU than a GPU or an ASIC or an FPGA. Nobody really wants to talk about that because I think people view it as a weakness. And they talked about the new CSS roadmap. Didn’t go through details on it. It was basically, yeah, we’ve got a next generation for V3 that’s performance optimized, and N, which is a performance per watt optimized. They put up some benchmarks that, no, we did not run at Signal 65. But they seemed very provocative, not only on generative AI but also versus Xeon.

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Patrick founded the firm based on his real-world world technology experiences with the understanding of what he wasn’t getting from analysts and consultants. Ten years later, Patrick is ranked #1 among technology industry analysts in terms of “power” (ARInsights)  in “press citations” (Apollo Research). Moorhead is a contributor at Forbes and frequently appears on CNBC. He is a broad-based analyst covering a wide variety of topics including the cloud, enterprise SaaS, collaboration, client computing, and semiconductors. He has 30 years of experience including 15 years of executive experience at high tech companies (NCR, AT&T, Compaq, now HP, and AMD) leading strategy, product management, product marketing, and corporate marketing, including three industry board appointments.