AI: UK chip designer Arm sees shares almost double

UK chipmaker Arm Holdings' shares have surged, nearly doubling in value following investor enthusiasm over the burgeoning AI industry.

The company, headquartered in Cambridge, outperformed financial expectations due to rising demand for AI-related chip technology.

Arm's processors are present in the majority of smartphones globally and, since being re-listed on the stock market in September after SoftBank's 2016 acquisition, its stock has leapt by 98%.

This growth mirrors that of Nvidia, another chipmaker, whose stock value has soared based on its AI chip sales, propelling it into the elite "Trillion-dollar club" of companies alongside Apple, Microsoft, Alphabet, and Amazon. Nvidia's success, in turn, benefits Arm as its designs are incorporated into CPUs that support AI chips.

Among Arm's clientele are industry leaders like Apple and car manufacturers investing in autonomous driving technologies. Founded in 1990 in Cambridge, Arm has undergone significant ownership changes, including SoftBank's failed attempt to sell it to Nvidia.

However, following regulatory pushback, SoftBank opted for an IPO on the New York-based Nasdaq.

Arm's stock jump is a positive development for SoftBank, which still owns a significant stake and has recently witnessed a near 30% uptick in its own shares, despite setbacks from other investment losses such as WeWork.