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SoftBank Group Corp. Chairman and CEO Masayoshi Son
Kiyoshi Ota | Bloomberg | Getty Images
Arm shares rose more than 24% on Monday, extending last week’s gains as investors continued to praise the chipmaker’s better-than-expected third-quarter profits and its place in the artificial intelligence boom.
Arm is currently up more than 90% since reporting quarterly results on Feb. 8, but there was no clear catalyst for Monday’s move. Arm’s stock price has risen 142% since its initial public offering in September and is now worth about $148 billion.
Arm said last week it could charge twice as much for its latest instruction set, which accounts for 15% of the company’s royalties, expanding its margins and allowing it to make more money on new chips. suggested. He also said that the demand for AI has led the company to enter new markets such as cloud servers and automobiles.
The strength of its loyalty, combined with Arm’s optimistic growth forecasts, has made the company the latest AI darling among investors, even though its revenue multiple is higher than Nvidia and AMD.
But Arm’s value may become clearer next month when its 180-day lockup expires. SoftBank still owns 90% of the outstanding shares. So since the company’s report last week, its stake in Arm has increased by more than $61 billion and is now worth more than $131 billion.
clock: Arm has a very clear AI story that drives growth
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