Japan’s SoftBank-owned UK chip designer, Arm Holdings, has experienced tremendous growth in its stock market value over the past week, almost doubling in value. The demand for artificial intelligence (AI) technology is driving this growth, as reflected in the company’s recent financial results showing a boost in sales related to AI. Despite not being directly used for AI, Arm chips power almost every smartphone in the world and are also used in self-driving cars due to their development. This has led to an increase in the valuation of Arm, which was taken private by SoftBank in 2016 and returned to the stock market last September.
Arm’s rise in stock market value opens up new opportunities for the company and its Japanese owner, SoftBank. Aside from Nvidia and Taiwan Semiconductor Manufacturing Company, Arm’s customers also include well-known consumer brands like Apple. In addition to Arm, Nvidia has also seen extraordinary 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 in the world, worth around $1.8 trillion. With its success and growing demand for AI technology, it seems that Arm Holdings is well on its way to becoming an even more valuable asset for SoftBank and beyond.