Masayoshi Son, Chairman and CEO of SoftBank Group Corp.
Kiyoshi Ota | Bloomberg | Getty Images
Arm shares rose more than 24% on Monday, extending last week's rise as investors continued to praise the chipmaker's better-than-expected third-quarter earnings and its position in the artificial intelligence boom.
Arm is now up more than 90% since it reported its quarterly financials on February 8, although there was no clear catalyst for Monday's move. The stock is up 142% since Arm's initial public offering in September and is now worth about $148 billion.
Last week, Arm said it could charge twice that amount for its latest instruction set, which represents 15% of the company's revenue, suggesting it can expand its margin and make more money from new chips. It also said it is breaking into new markets, such as cloud servers and cars, due to demand for artificial intelligence.
The strength of its equity combined with Arm's optimistic growth outlook has made the company the latest AI darling among investors, despite its higher earnings multiples than Nvidia or AMD.
However, Arm's value may become clearer next month when the 180-day lockup period expires. SoftBank still owns 90% of the outstanding shares, meaning its stake in Arm has increased by more than $61 billion since the company's report last week and is now worth more than $131 billion.
He watches: Arm has a very clear AI story that will lead to growth
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