UK chip designer Arm witnesses nearly a doubling of its shares as AI advances

Chipmaker Arm Soars in Stock Market Value Amid Rising Demand for AI Technology

Arm Holdings, a UK-based chip designer, has experienced an astonishing growth in its stock market value over the past week. The company’s shares almost doubled in value, fueling speculation among investors about its success due to the rising demand for artificial intelligence (AI). This demand is reflected in Arm’s recent financial results, which show a significant increase in sales related to AI technology.

Arm chips are used in almost every smartphone worldwide and are also utilized in the automotive industry due to the development of self-driving technology. Although Arm’s technology is not directly related to AI, chip manufacturers like Nvidia choose Arm for CPUs that complement their AI-specific chips. Apart from Nvidia and Taiwan Semiconductor Manufacturing Company, Arm also counts well-known consumer brands like Apple among its customers.

The news of Arm’s soaring valuation comes at a time when chipmaker Nvidia has also seen incredible growth, with its shares more than tripling in value over the past year. This high demand for AI chips has made Nvidia one of the most valuable publicly-traded companies globally, worth around $1.8 trillion. With its increased stock market value, Arm now opens up new opportunities for itself and its Japanese owner, SoftBank, which still holds a roughly 90% stake in the business.

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