AI: UK chip designer Arm sees shares almost double

ai:-uk-chip-designer-arm-sees-shares-almost-double
AI: UK chip designer Arm sees shares almost double

Arm Holdings, a UK-based chip design firm, has seen a dramatic increase in its stock market value as investors bet on the artificial intelligence (AI) boom. Financial results released by the company last week showed that demand for AI-related technology is leading to increased sales. Previously purchased by Japan’s SoftBank in 2016, Arm’s shares have continued to soar since it returned to the stock market last September. The company’s shares are up by more than 98% and its technology, which is not directly used for AI work, is being chosen by chip makers like Nvidia as central processing units (CPUs) that complement their AI-specific chips.

In addition to Nvidia, some of Arm’s customers include well-known consumer brands like Apple. Demand for Arm-designed chips is growing in the carmaking industry thanks to the development of self-driving technology. Arm’s technology may not be directly used for AI, but its CPUs are in high demand from chipmakers in the industry.

The AI boom has caused chipmaker Nvidia’s shares to more than triple, and the company has become one of the most valuable publicly-traded companies in the world, with a stock market valuation of around $1.8 trillion. This has made Nvidia the fifth publicly traded US company to join the “Trillion-dollar club,” along with technology giants, Apple, Microsoft, Alphabet and Amazon. The boom has offered SoftBank a much-needed boost, as it has been hit by losses due to the falling valuations of some of its investments, including struggling office space firm WeWork.

Arm was founded in 1990 by a group of chip designers in the university city of Cambridge. Despite its acquisition by SoftBank, Arm has retained a significant number of partnerships, maintaining its relevance in the industry

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