Arm Holdings, a UK chip designer, has seen tremendous growth in its stock market value over the last week, almost doubling in value. The demand for artificial intelligence (AI) is reflected in the company’s recent financial results, showing a boost in sales related to AI technology. This has led to a significant increase in the valuation of Arm, which was taken private in 2016 by Japan’s SoftBank and returned to the stock market last September.
Arm chips power almost every smartphone in the world and are also used in the automotive industry due to the development of self-driving technology. While Arm’s technology is not directly used for AI, chip makers like Nvidia are choosing Arm for CPUs that complement their AI-specific chips. Aside from Nvidia and Taiwan Semiconductor Manufacturing Company, Arm’s customers also include well-known consumer brands like Apple.
The news of Arm’s soaring valuation comes at a time when chipmaker Nvidia has also seen extraordinary growth, with its shares more than tripling in value over the last year. This high demand for AI chips has made Nvidia one of the most valuable publicly-traded companies in the world, worth around $1.8 trillion. The increase in stock market value opens up new opportunities for the company and its Japanese owner, SoftBank, which still holds a roughly 90% stake in the business.
Investors are speculating on Arm’s success due to increasing demand for artificial intelligence (AI). This demand is reflected in the company’s recent financial results showing a boost in sales related to AI technology. With this growth comes new opportunities for Arm and its Japanese owner SoftBank.
Arm Holdings is not directly involved with creating AI-specific chips but it’s technology is being utilized by other chip makers such as Nvidia who are using it for CPUs that complement their own AI chips. Additionally, well-known consumer brands like Apple use Arm’s technology.
With this growth comes new opportunities for both companies as they continue to innovate within their respective industries while capitalizing on the growing demand for AI technology.