Arm shares soared 29% on Monday, extending last week's rally as investors continue to applaud the chipmaker's better-than-expected third-quarter earnings and its position in the artificial intelligence boom.
Arm is now up 93% since it reported quarterly financials on Feb. 8, though without any clear catalyst for Monday's move.
Last week, Arm said it could charge twice as much for its latest instruction set, which accounts for 15% of the company's royalties, suggesting it can expand its margin and make more money off new chips.
Its royalty strength combined with Arm's optimistic growth forecast has made the company the latest AI darling among investors, despite a higher earnings multiple than Nvidia or AMD.
For the second time in three trading sessions, Arm's daily volume exceeded 100 million shares, or more than 10 times the average for the stock .
Persons:
SoftBank
Organizations:
Nvidia, AMD