Arm Designer has overtaken HSBC to become the fourth most valuable company in the UK

Arm, the Cambridge-based chip designer, has overtaken HSBC and Unilever to become the fourth most valuable company in the UK.

The company’s US-listed shares rose as much as 30 per cent on Monday to trade as high as $158.55, before settling at $147.03.

That brings its total market capitalization to $150 billion, putting it behind Shell, gas company Linde and pharmaceutical giant AstraZeneca.

Arm overtakes HSBC as the fourth most valuable company headquartered in the UK

Arm overtakes HSBC as the fourth most valuable company headquartered in the UK

It continues the rise that began last week after Arm announced that its third-quarter earnings beat estimates.

Arm creates and licenses semiconductor designs rather than manufacturing chips, which means it makes money through royalties.

The company, whose technology is used in almost all phones and computers, said its total revenue in the quarter increased 14 percent from a year earlier to $824 million.

CEO Rene Haas said the company has benefited from growing demand for new AI applications.

Arm was initially listed on the London Stock Exchange before a deal with SoftBank took it private in the wake of Brexit. It then handled another IPO in the UK before listing on the tech-heavy Nasdaq stock exchange in the US last summer.

Since then, its shares have risen 135 percent.

“UK investors are upset that Cambridge-based chip leader ARM has not returned to the London stock market, and this sentiment will be amplified by the company’s latest update,” said Ross Mould, investment director at AJ Bell.

(tags for translation) Daily Mail

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