Cambridge, England-based fabless chipmaker Arm Holdings PLC (NASDAQ:ARM) continued raging higher on the Nasdaq exchange on Thursday, with nearly 40% added to its shares in the opening few hours.
Arm’s market valuation now stands at more than $105 billion, having added a walloping $27 billion today alone.
Year to date, the stock is up over 50% and has about doubled since IPOing in the US last September.
The astronomical rally follows yesterday’s second-quarter results, when Arm posted record quarterly revenues of $824 million, up 14% year on year.
Though operating profit was down 45% year on year due to exorbitant research and development costs, the Street was more interested in the forward potential offered through artificial intelligence (AI) applications.
AI and large-language applications will drive demand for Arm’s CPU designs, said the group, with global tech players including Nvidia Corp, Dell Technologies and Hewlett Packard Enterprises incorporating the Arm-based GH200 Grace Hopper Superchip.
In the core smartphone space, Google, Samsung, Vivo and Xiaomi all have announced new Arm-based smartphones that demonstrate generative AI and LLM capabilities.
Arm’s 90% shareholder, the Japanese conglomerate SoftBank, was also bolstered by Arm’s second-quarter results, having closing 10% higher in Tokyo.