Arm Holdings, a UK-based chip designer, has experienced tremendous growth in its stock market value over the past week, nearly doubling in value. This surge in value is due to the increasing demand for artificial intelligence (AI) and the company’s recent financial results showing a boost in sales related to AI technology. Despite not directly using AI technology, Arm chips are used by companies like Nvidia for CPUs that complement their AI-specific chips. Additionally, well-known consumer brands like Apple use Arm’s technology.
This news comes at a time when chipmaker Nvidia has also seen extraordinary growth, with its shares more than tripling in value over the past year. As one of the most valuable publicly-traded companies in the world, worth around $1.8 trillion, Nvidia has been benefiting from the high demand for AI chips. With Arm’s increase in stock market value, new opportunities arise for both the company and its Japanese owner, SoftBank, which still holds a roughly 90% stake in the business.