Arm Stock Jumps More Than 50% on AI Craze
Shares of British chip designer Arm surged more than 50% after its earnings report surprised analysts and suggested artificial intelligence may be driving a recovery in the semiconductor industry.
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Shares of Arm surged more than 50% after its earnings report surprised analysts as the AI may be driving a recovery in the semiconductor industry.#ai #chips #semiconductors pic.twitter.com/yAzUPaWNTi
— The_Journalbiz (@the_journalbiz) February 8, 2024
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The company said it made a record $824 million in sales in its last quarter and projected as much as $900 million for the quarter currently underway. Both figures were above what Wall Street expected.
Arm’s shares reached about $120 on Thursday morning, sending its market value to over $117 billion, more than doubling its price at its initial public offering last year.
Arm’s chip designs are in nearly all the world’s smartphones, making its results an indicator of the health of the handset market. The company has also extended its reach in other kinds of chips, including central processors that go into computers and those in data centers where AI computations are made.
A faster-than-expected shift to AI gave a boost to the results, Arm executives said. Many of the latest Arm-based smartphone chips have AI capabilities built-in, and Arm-based circuits are part of some of the most advanced AI systems made by Nvidia, the leader in AI computing.
