Shares of chip designer Arm rose 60%, as it benefited from the artificial intelligence boom

Shares of British chip design company Arm rose yesterday, as it benefited from the artificial intelligence boom.

On their best trading day since their New York debut last year, shares of the Cambridge-based group rose more than 60 percent to an all-time high of $126 before retreating to about $116, which was still 50 per cent. The hundred. Even today.

Its value has more than doubled since London declined to list it on the Nasdaq at $51 a share in September.

It is now worth nearly £100bn, cementing its position as one of Britain’s few tech giants to outperform the world.

But his success will add salt to City’s wounds after a campaign to persuade him to list in London fell on deaf ears.

AI WINNER: On its best trading day since its New York debut last year, shares of Cambridge-based chip designer Arm rose more than 60% to an all-time high of $126.

AI WINNER: On its best trading day since its New York debut last year, shares of Cambridge-based chip designer Arm rose more than 60% to an all-time high of $126.

“For the UK market and those who have done their best to attract Arm to list on the London Stock Exchange, the excellent results and share price reaction are a bad blow,” said Victoria Scholar, an analyst at Interactive Investor.

“The London listed market continues to suffer from a chronic lack of exciting technology prospects, contributing to the poor performance of the FTSE 100 versus the S&P 500 and Nasdaq.”

Founded in 1990, Arm has long been hailed as a technology darling in the UK, designing the microchips used in billions of smartphones and other devices.

It was listed on both the FTSE 100 and Nasdaq before being taken private by Japan’s SoftBank in a £26bn deal in 2016.

When it returned to the stock market last year, it chose New York despite pressure from Prime Minister Rishi Sunak and the London Stock Exchange.

Investors were jubilant yesterday when Arm CEO Rene Haas said the company was tapping into the “profound opportunity” provided by artificial intelligence.

The company’s revenue was £653 million in the three months to the end of December, up 14 per cent year-on-year and well above estimates of £605 million.

The technology company also increased its full-year revenue guidance from between £2.35 billion and £2.46 billion to between £2.5 billion and £2.54 billion.

Susannah Streeter, head of finance and markets at Hargreaves Lansdowne, said ARM had “badly surprised expectations”.

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

The update came amid a lot of soul-searching in the City of London following a series of recent snubs.

Gambling giant Flutter said last week it would move its “primary” listing from London to New York, while travel company Tui will vote next week on whether to move its listing to Frankfurt.

CRH Building Materials and Ferguson Plumbing Group also chose to move to New York.

(tags for translation) Daily Mail

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