Could ARM CPUs become the dominant processors in the Intel-dominated netbook world soon? Robert Castellano, president of The Information Network, thinks so.

Castellano, who heads the market research and consulting firm, predicts that ARM-based processors will take market share from Intel’s Atom processors by 2012, with a 55% share.

He said that Atom will hole an 80% market share of the 21.5 million netbooks expected to be sold this year, but believes that changes in technology — including trends in cloud computing and Linux — will cause Atom’s grip on the market to slip in these times of recession, paving the way for ARM’s rise.

The full press release has more quotes from Castellano about his intriguing prediction.