February 23, 2024 12:14 am
UK chip designer Arm witnesses nearly a doubling of its shares as AI advances

Arm Holdings, the UK-based chip designer, has experienced remarkable growth in its stock market value over the past week, almost doubling in worth. The surge in demand for artificial intelligence (AI) is attributed to the company’s recent financial results that show a significant increase in sales related to AI technology.

The success of Arm’s technology is reflected in the increasing use of self-driving cars and automobiles that are equipped with it. The chips used by Nvidia for its CPUs that complement its AI-specific chips are also made by Arm. In addition to Nvidia and Taiwan Semiconductor Manufacturing Company, Arm’s customers include well-known consumer brands such as Apple.

SoftBank, a Japanese telecommunications giant, owns a roughly 90% stake in Arm and has benefited greatly from the company’s growth. The surge in demand for AI chips has also propelled Nvidia to become one of the most valuable publicly traded companies globally, worth around $1.8 trillion.

The rise of AI technology has led to increased demand for specialized chips like those used by Nvidia and Arm Holdings. With this growth comes new opportunities for both companies and their owners as they continue to innovate and expand their reach within the industry.

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