Arm Holdings, a British chip designer, has experienced an impressive rise in its stock market value over the past week, almost doubling in worth. The surge in demand for artificial intelligence (AI) is attributed to this increase in valuation. Investors are speculating about the company’s success due to the growing interest in AI technology. This is reflected in the recent financial results of Arm, which have shown an increase in sales related to AI-related technologies.

The company’s chips power almost every smartphone worldwide and are also used in the automotive industry for self-driving technology development. Although Arm’s technology isn’t used directly for AI, chipmakers such as Nvidia choose Arm for CPUs that complement their AI-specific chips. In addition to Nvidia and Taiwan Semiconductor Manufacturing Company, Arm has a wide range of customers including well-known consumer brands like Apple.

The news of Arm’s rising valuation comes at a time when Nvidia has also seen remarkable growth, with its shares more than tripling in value over the past year. This high demand for AI chips has made Nvidia one of the most valuable publicly traded companies globally, worth around $1.8 trillion. With its rise in stock market value, Arm opens up new opportunities for both itself and its Japanese owner, SoftBank, which still holds about 90% of the business stake.

By Editor

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