Masayoshi Son, president and CEO of SoftBank Group Corp.
Kiyoshi Ota | Bloomberg | fake images
Arm Shares soared 29% on Monday, extending last week's rally as investors continue to applaud the chipmaker's better-than-expected third-quarter earnings and its position in the artificial intelligence boom.
Arm is now up 93% since it reported its quarterly financial statements on February 7, albeit without any clear catalyst for Monday's move. The stock has nearly tripled since Arm's initial public offering in September, closing at $148.97, and is now worth nearly $153 billion, or a little more than $30 billion less. Intel Market cover.
Last week, Arm said it could charge twice as much for its latest instruction set, representing 15% of the company's royalties, suggesting it can widen its margin and make more money from the new chips. He also said that he was entering new markets, such as cloud servers and automotive, due to the demand for AI.
Its royalty strength combined with Arm's optimistic growth forecast has made the company the latest AI darling among investors, despite having a higher earnings multiple than either Nvidia or AMD.
However, Arm's value may become clearer next month when the 180-day post-IPO lockup expires. SoftBank still owns 90% of the outstanding shares, meaning its stake in Arm has increased by more than $61 billion since the company reported last week and is now worth more than $131 billion.
For the second time in three trading sessions, Arm's daily volume surpassed 100 million shares, or more than 10 times the stock average.
Correction: Arm reported quarterly financials on February 7. An earlier version incorrectly indicated the date.
LOOK: Arm has a very clear AI story that will lead to growth
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