Placeholder canvas
3.6 C
Friday, February 23, 2024
HomeFinance NewsArm stock extends rally to second week with 25% increase.

Arm stock extends rally to second week with 25% increase.


Related stories

Virginia Senator L. Louise Lucas deals another blow to arena project.

Virginia's top priority for Gov. Glenn Youngkin to build...

Governor Waller’s speech on the economic forecast.

Neel Kashkari, the President of the Federal Reserve Bank...

Miyazaki suggests Elden Ring map larger than Limgrave, 30-hour base RPG took 125.

The Souls games, developed by FromSoftware, have not only...

Block’s Bitcoin bets, boosted by Cash App, resulted in $207M gains.

Block, the fintech company led by Jack Dorsey, former...

Arm shares surged more than 24% on Monday, adding to last week’s gains, as the chipmaker continues to impress investors with its better-than-expected third-quarter earnings and strong position in the artificial intelligence market. Since reporting its quarterly financials on February 8, Arm’s stock has soared by over 90%, with no clear explanation for Monday’s surge. This translates to a 142% increase since Arm’s initial public offering in September, lifting its value to approximately $148 billion.

What’s driving the enthusiasm for Arm’s future prospects is its latest instruction set, which accounts for 15% of the company’s royalties, enabling it to potentially double its earnings and break into new markets such as cloud servers and automotive, driven by the high demand for AI technology. Despite a higher earnings multiple than Nvidia or AMD, Arm’s strengths in the royalty side, alongside its optimistic growth forecast, have made it a favored investment on Wall Street. However, the true value of Arm’s stock may become clear next month when SoftBank is due to release its 90% holding of outstanding stock, which has already soared by over $61 billion since the company’s report last week and is now worth upward of $131 billion.

Source link


- Never miss a story with notifications

- Gain full access to our premium content

- Browse free from up to 5 devices at once

Latest stories


Please enter your comment!
Please enter your name here