Arm’s shares rose 29% on Monday, pushing its gains to more than 90% since it reported financial results on Feb 7. The company is expanding beyond its traditional base in smartphone technology into new markets like artificial intelligence applications, lifting its outlook.
SoftBank founder Masayoshi Son has pledged to explore ways to use Arm’s chip designs as he pursues AI-related investments. The Tokyo-based company also reported financial results last week, logging its first profit after four quarters of losses.
SoftBank has been trying to recover from a series of misplaced startup bets, and Son can now point to Arm as an example of his risk-taking paying off. Arm is becoming the crown jewel among his holdings, much like Chinese e-commerce pioneer Alibaba Group Holding Ltd. did in the past.
Arm has already far surpassed SoftBank in terms of market value, even though the Japanese company holds such a large share of the company’s equity. Arm’s market valuation is now about US$153 billion ($205.84 billion), while SoftBank’s is about US$86 billion including Tuesday’s rally.
