From NASDAQ:

Arm Holdings ARM.O shares surged more than 55% on Thursday, as demand for its technology to design chips for artificial intelligence features is forecasted to rise. With a market value expected to exceed $100 billion, investors are bullish on Arm’s success, shifting a dramatic turnaround from its first month as a public company.

Arm’s technology is not directly used in AI work, but the company sells blueprints and intellectual property to create computing chips. Companies like Nvidia are choosing Arm for central processing units to accompany their AI-specific chips, contributing to the stock’s 90% surge to $120.80 on Thursday. This move “is an indication that investors are not fearing the end of the IPO,” says chief investment officer Michael Ashley Schulman.

As Arm plans to enter the laptop business, competition against companies like Apple is expected to intensify. Despite people’s skepticism over the value, with Arm’s IPO lockup period expiring on March 12, experts expect “any post-lockup sales could be well absorbed by the market.”

Japan’s SoftBank Group holds a 90% stake in Arm, and the company CEO Rene Haas remains bullish on their prospects. Arm’s success in diversifying its business is also driving investor interest, as their model of creating and licensing semiconductor designs allows for rapid growth without requiring significant investment. With shares outperforming other U.S. chip stocks, investors are increasingly recognizing Arm’s value within the industry.



Read more: Arm shares soar as AI-fueled boom brightens growth prospects