Yesterday – on Tuesday – Arm shares belonging to the Nasdaq technology index dropped significantly, but here, firstly, the reaction to surprising inflation data in the United States (more about it under ) had a major impact, and secondly, after such increases, some profit-taking she had to come. In the after-market quotations, Arm is already in an increasingly visible positive position (opening of official quotations on Wall Street at 3:30 p.m. Polish time).
Earlier, however, the company’s share price on the American stock exchange skyrocketed. Between last Wednesday and last Monday it increased by as much as 100%.
Investors are hunting for the “new Nvidia”
According to one analyst he recently quoted, investors are hunting for the “next Nvidia.” This is related to the boom in artificial intelligence, also visible on stock exchanges. At the center of this boom is Nvidia. This American chip manufacturer was the best company in the S&P 500 stock exchange index last year, gaining about 200 percent during that time.
Meanwhile, British chip designer Arm has gained over 190 percent since its September debut on the Nasdaq stock exchange in the US, and its capitalization (i.e. stock market valuation) exceeded $152 billion.
Arm’s stock prices skyrocketed. Source: investing.com
As he notes , “anyone who is anyone in the field of AI is an Arm licensee.” It also applies to Nvidia, which even a few years ago was supposed to buy the British designer for $40 billion, but in the end it included Nvidia, which in 2020 agreed to buy the company for $40 billion, but the American regulator – the Federal Trade Commission – did not allow it.
Companies in this industry are gaining popularity due to the growing popularity of artificial intelligence (AI) tools such as ChatGPT. Nvidia is the largest manufacturer of AI chips in the world. Investors rode a wave, of which Arm is currently an extension.
The resulting report sparked imagination
The company’s stock skyrocketing in recent days began with last week’s publication of its 2023 results. Although Arm’s revenues fell by 1% throughout the year. (with a margin of 25%), but the fourth quarter itself looked fantastic in this respect – with an increase of 14%. Every year. The company’s forecasts also sparked imagination, as it expects to grow by 20% in the 12 months to March this year. Analysts predict that the company’s margin will soar to over 40 percent. – says
Arm’s stock market capitalization, as we mentioned at the beginning of this text, has tripled since its autumn debut on the US stock exchange, to over $150 billion. Meanwhile, Nvidia on Tuesday, February 13, in terms of value on the stock exchange. We are talking about unbelievable numbers. Nvidia’s capitalization is now $1.78 trillion and Amazon’s is $1.75 trillion. The chip manufacturer was close to swallowing the owner of Google, Alphabet, whose stock market value is $1.81 trillion.
Source: Gazeta
Mabel is a talented author and journalist with a passion for all things technology. As an experienced writer for the 247 News Agency, she has established a reputation for her in-depth reporting and expert analysis on the latest developments in the tech industry.
