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In recent years, UK chip designer Arm Holdings has experienced significant growth in its stock market value. Over the past week alone, the company’s value has almost doubled, reflecting the increasing demand for artificial intelligence (AI) technology. This demand is evident in Arm’s latest financial results, which show a boost in sales related to AI technology.

The success of Arm is not only due to its own technology but also to its partnerships with other companies in the industry. For example, chip makers like Nvidia choose Arm for CPUs that complement their AI-specific chips. This has led to a significant increase in the valuation of Arm, which was taken private by Japan’s SoftBank in 2016 and returned to the stock market last September.

Arm’s technology is not directly used for AI, but it powers almost every smartphone in the world and is also used in the automotive industry due to the development of self-driving technology. Aside from Nvidia and Taiwan Semiconductor Manufacturing Company, Arm’s customers also include well-known consumer brands like Apple.

The news of Arm’s soaring valuation comes at a time when chipmaker Nvidia has also seen extraordinary growth, with its shares more than tripling in value over the last year. This high demand for AI chips has made Nvidia one of the most valuable publicly-traded companies in the world, worth around $1.8 trillion. The increase in stock market value opens up new opportunities for both companies and their Japanese owner, SoftBank, which still holds a roughly 90% stake in the business.

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