Arm flies on the stock market: it jumps by more than 50% thanks to the push of artificial intelligence

Arm flies on the stock market: it jumps by more than 50% thanks to the push of artificial intelligence

MILAN – Big Tech’s demand for the development of artificial intelligence is soaring Arm, the British chip designer listed on the American Stock Exchange: after the publication of the quarterly accounts, which were well above expectations, it earned more than 50%.

He was the CEO Rene Haas to recognize that the company is riding the enormous opportunity that comes from the demand for new artificial intelligence applications. Revenues i Arm, in the quarter ended in December, recorded 824 million dollars14% more than the previous year and above the 763 million estimated by the consensus of S&P Capital IQ, reports the Financial Times.

Revenue forecasts for the full year have also been raised, bringing them to a range between 3.15 and 3.2 billion dollars. Adds the Bloomberg What is then surprising is the profit forecast of 30 cents per share for the quarter ending in March, well above Wall Street’s expectation of 21 cents.

Arm’s bright prospects stem from Haas’ strategy to push the business beyond the handset supply market, which now accounts for about a third of sales.

As we explained in this article on the impact of AI on chip players, Arm is in fact specialized in chip design, then licenses these projects to many technology companies, which deal with the material creation of the chips.

In addition to assembling chip solutions that provide a greater return to Arm, the company is expanding its reach to sectors such as data centers and automotive. Financial director Jason Child then added the icing on the cake of an above-expected performance of the joint venture in China, which is worth a quarter of revenues.

Commenting on the results, Haas – quoted by Ft – said Arm is “the most fundamental and pervasive computing platform in the history of digital design.” For example, with the new V9 architecture dedicated precisely to devices that support artificial intelligence applications, it manages to rake in 15% of overall revenues from royalties, up from 10% in the previous quarter and at a double rate compared to the previous version. Nvidia, Amazon, Microsoft are some of the names that use these designs.

Fueling the royalties, Arm also significantly boosted its stock market listing with the largest gain ever recorded since its arrival on the market last September.

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