Stocks arm up 25%, extending rally into second week
Masayoshi Son, chairman and CEO of SoftBank Group Corp.
Kiyoshi Ota | Bloomberg | Getty Images
An arm Shares rose more than 24% on Monday, extending last week’s rally as investors continue to praise the chipmaker’s better-than-expected third-quarter earnings and its positioning in the rise of artificial intelligence.
Arm is now up more than 90% since it reported quarterly financials on February 8, although there is no clear mechanism for Monday’s move. The stock is up 142% since Arm’s initial public offering in September and is now worth about $148 billion.
Last week, Arm said it could pay twice as much for its latest set of instructions, which make up 15% of the company’s copyrights, suggesting that for them to expand its margin and make more money off new chips. They also said it was breaking into new markets, such as cloud servers and cars, due to the demand for AI.
Its royal strength combined with Arm’s optimistic growth forecast has made the company the latest AI among investors, despite multiple higher earnings than Nvidia or AMD.
However, Arm’s value could become clearer next month when the 180-day lockout ends. SoftBank still owns 90% of the outstanding stock, meaning its stake in Arm has increased by more than $61 billion since the company’s report last week and is -now worth up to $131 billion.
Watch: Arm has a very clear AI story that will lead to growth
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