Arm shares surge on strong forecast of AI-fueled chip upgrades


A screen displays the logo of Softbank's Arm, chip design firm, during the company’s initial public offering (IPO) at Nasdaq Market site in New York, U.S., September 14, 2023. REUTERS/Brendan McDermid/File Photo

(Reuters) -Arm surged more than 30% on Wednesday after the British tech company forecast quarterly sales and profit above Wall Street expectations as customers aim to design new chips for artificial intelligence work, generating higher royalties.

The surge in Arm's stock lifted its market capitalization by about $26 billion. Now trading at $102.11, Arm has doubled from the $51 price set in its September initial public offering.

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