Arm Holdings, a UK chip designer, has experienced tremendous growth in its stock market value over the past week. The company’s stock value almost doubled in just one week, thanks to the increasing demand for artificial intelligence (AI) technology. This demand is reflected in the company’s recent financial results, which show a significant increase in sales related to AI technology.
Despite not being directly involved in AI development, Arm chips are still highly sought after by companies like Nvidia and Taiwan Semiconductor Manufacturing Company. These companies use Arm chips for their CPUs that complement their AI-specific chips. In addition to Nvidia and Taiwan Semiconductor Manufacturing Company, Arm also has customers like Apple, which further enhances its reputation and value.
The news of Arm’s soaring valuation comes at a time when chipmaker Nvidia has also seen extraordinary growth. Over the past year, Nvidia’s shares have more than tripled in value, making it one of the most valuable publicly-traded companies in the world, worth around $1.8 trillion. With this increase in stock market value, Arm Holdings opens up new opportunities for both itself and its Japanese owner, SoftBank, which still holds a roughly 90% stake in the business.