Last Wednesday, the Cambridge, Massachusetts-based company released its financial results, which demonstrated how the market for AI-related technologies is driving up revenues.
Nearly all smartphones in use today are powered by Arm chips.
SoftBank of Japan bought the company private in 2016, and it went back on the public market in September of last year.
Since then, Arm’s shares have increased dramatically. After last week’s results report, and have already increased by almost 98%.
It happens at the same time that the value of chipmaker Nvidia’s stock has more than tripled over the past year due to the surge in demand for its AI chips.
With a stock market capitalization of about $1.8 trillion (£1.4 trillion), Nvidia is now among the most expensive publicly-traded businesses in the world thanks to the AI boom.
It also makes it the fifth publicly traded US corporation, after tech behemoths Apple, Microsoft, Alphabet, and Amazon, to become a member of the prestigious “Trillion-dollar club”.
While Arm’s technology isn’t specifically utilized for artificial intelligence (AI), companies such as Nvidia are selecting it for their central processing units (CPUs) to support their AI-focused chips.
In addition to Nvidia and Taiwan Semiconductor Manufacturing Company (TSMC), well-known consumer companies like Apple are among Arm’s clientele.
The auto industry is seeing an increase in demand for Arm-designed processors as a result of the advancements in autonomous driving technologies.
In the university city of Cambridge, a group of chip inventors formed Arm in 1990.
For $32 billion, SoftBank purchased it in 2016. The Japanese corporation declared its intention to sell Arm to Nvidia four years later.
