All data are based on the daily closing price as of May 23, 2024

Arm’s Market Value Surges Past $100 Billion on Upgraded Revenue Forecast

Softbank Group owned British chip designer's stock hits record high after raising fiscal year expectations, signaling strong demand for V9 architecture
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Arm, the British semiconductor and software design company, has significantly uplifted its financial outlook for the fiscal year ending March 31, 2024, adjusting its revenue projections upward from an initial range of $2.96 billion to $3.08 billion, to a new range of $3.155 billion to $3.205 billion. This revision fueled a record 47.89% surge in its stock price, marking the most substantial single-day gain since its U.S. IPO in September last year and catapulting its market value over the $100 billion threshold to $116.8 billion. This milestone reflects heightened investor confidence and Arm’s growing influence in the global semiconductor industry.

The company’s performance in the third quarter notably exceeded expectations, with revenues reaching $824 million against a forecasted $720 million to $800 million. This outperformance led to the revised annual forecast, underlining the robust demand for Arm’s technologies, particularly its V9 architecture. Arm CEO Rene Haas highlighted the architecture’s increasing contribution to royalty revenues, driven by its adoption in high-end smartphones for enhanced performance and AI capabilities. Haas anticipates that within three to four years, the V9 architecture will become standard across all smartphones worldwide, further propelling Arm’s revenue growth.

This financial success story has also had a ripple effect on SoftBank Group, Arm’s parent company, which saw an 11% spike in its stock price, reaching its highest level since September 2021. SoftBank’s pivot towards AI investments, with Arm at the core, underscores a strategic shift in its portfolio, moving from previous bets like Alibaba to a future grounded in artificial intelligence and cutting-edge semiconductor technology.

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