• Sun. Mar 3rd, 2024

Unprecedented Jumps in Arm Holdings Stock Value: Is Artificial Intelligence the Real Reason Behind it?


Feb 11, 2024
Analysts Express Concern Despite 50% Stock Jump in Arm

Last Thursday, one British chip company caught the attention of all of Wall Street: a company arm holdings It jumped about 50% in one day, and completed a jump of 125% since it was issued less than six months ago, to a value of about 118 billion dollars. The reason for the recent increase was encouraging reports and especially good forecasts for the future thanks to strong demand from the field of artificial intelligence. So is arm the new hot stock on Wall Street? Or were the investors blinded by the artificial intelligence and the increase was spotty?

First we will explain who arm is. “In the chip world there are two architectures,” explains Sergey Vaschunok, a senior analyst at the Oppenheimer investment house. “The first is from Intel, on which the home computers are built, and the second is from Arm, which is the basis for everything else. It registered a patent on the architecture so that almost all companies are actually based on Arm and pay royalties to it.” The Japanese investment fund Softbank, which owns about 90% of arm shares, benefits from all this goodness.

arm’s chips are used in fields such as cellular, where the company controls more than 99% of

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