• Tue. Mar 5th, 2024

Chip Designer Arm Holdings Doubles in Worth Due to AI Demand and Nvidia’s Tripling in Value

ByEditor

Feb 13, 2024
UK chip designer Arm witnesses nearly a doubling of its shares as AI advances

In recent times, UK chip designer Arm Holdings has experienced tremendous growth in its stock market value, nearly doubling in worth over the past week. The increase in demand for artificial intelligence (AI) is attributed to this growth, as reflected in the company’s recent financial results. These results show a significant boost in sales related to AI technology. Arm chips are used in almost every smartphone worldwide and have also found applications in the automotive industry due to the development of self-driving technology.

Although Arm’s technology is not directly used for AI, chip manufacturers like Nvidia are choosing Arm for CPUs that complement their AI-specific chips. In addition to Nvidia and Taiwan Semiconductor Manufacturing Company, Arm’s customers include well-known consumer brands like Apple. This growth opens up new opportunities for the company and its Japanese owner, SoftBank, which still holds a roughly 90% stake in the business.

Simultaneously, chipmaker Nvidia has also experienced extraordinary growth, with its shares more than tripling in value over the last year. This high demand for AI chips has made Nvidia one of the most valuable publicly-traded companies in the world, worth around $1.8 trillion. The news of Arm’s soaring valuation comes at a time when there is increasing awareness of the potential benefits of AI and its impact on various industries, making it an attractive investment opportunity for many investors.

In conclusion, Arm Holdings’ success story highlights how technological advancements can create new opportunities and increase stock market values significantly. With continued innovation and increased demand for AI technology across different sectors, it is likely that companies like Arm will continue to experience significant growth and remain key players in shaping the future of technology.

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