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

Rising Stock Market Values for Arm and Nvidia: Driven by the Demand for AI Chips

The demand for artificial intelligence (AI) is driving tremendous growth in the stock market value of UK chip designer Arm Holdings, which has almost doubled in worth over the last week. The increase in valuation of Arm, which was taken private in 2016 by Japan’s SoftBank and returned to the stock market last September, is being speculated on by investors due to its increasing sales related to AI technology.

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 both companies and their Japanese owner, SoftBank, which still holds a roughly 90% stake in Arm’s business.

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