Arm Holdings, a UK chip designer, has experienced tremendous growth in its stock market value over the past week, nearly doubling in value. The demand for artificial intelligence (AI) is driving this growth, as reflected in the company’s recent financial results showing an increase in sales related to AI technology. Despite not being directly involved in AI development, Arm chips are used by many companies like Nvidia and Taiwan Semiconductor Manufacturing Company to complement their own AI-specific chips. Additionally, well-known consumer brands like Apple also use Arm’s technology.
This news comes at a time when Nvidia has also seen substantial growth, with its shares more than tripling in value over the past year. As a result of this high demand for AI chips, Nvidia has become one of the most valuable publicly-traded companies globally, worth around $1.8 trillion. The rise in stock market value provides new opportunities for Arm and its Japanese owner SoftBank, which still holds approximately 90% stake in the business. With this momentum and growth potential ahead of them, both companies are well-positioned to continue expanding their influence within the rapidly growing AI industry.