UK chip designer Arm's shares soar 49% with strong AI demand

AI is everywhere, from most complex cloud applications to smallest edge devices, says company

By Ovunc Kutlu

ISTANBUL (AA) - UK-based computer chip designer Arm Holdings saw its stock price soar 49% on Thursday with strong demand for artificial intelligence (AI) technology.

The company's stock price was trading at $115.12 per share on the Nasdaq around 3.25 p.m. EDT for a daily gain of 49.5% after closing the previous session at $77.01 a share.

The steep increase came after the company said that AI demand has been increasing globally.

"Arm’s licensing revenue was supported by increasing demand for new technology driven by all things AI," it said Wednesday in a letter to shareholders. "From the most complex AI cloud applications to the smallest edge devices, AI on Arm is everywhere."

The company's initial public offering in September on the Nasdaq was one of the biggest of 2023 when it raised almost $4.9 billion.

Japan's multinational holding company SoftBank Group acquired Arm Holdings for $32 billion in 2016, while American graphics processor manufacturer Nvidia's planned takeover of Arm Holdings in 2020 collapsed two years later.

In addition to Nvidia, Apple, Samsung and Intel have shown an interest in investing in Arm Holdings in recent months.

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