Shares are up at Cambridge-based semiconductor designer Arm after the company posted strong revenue growth in its latest earnings report.
Arm stock surged by about 30% after beating analyst expectations with a quarterly revenue of $824m, a 14% year-on-year increase.
Arm, which listed publicly on the Nasdaq Stock Exchange last year, raised its full-year revenue guidance from $2.96bn–$3.1bn to $3.15bn–$3.2bn.
Company CEO Rene Haas credited the strong results to soaring demand for AI technology, which in turn drove demand for essential microchips.
“Arm delivered another quarter of record revenues driven by continued adoption of the world’s most pervasive compute platform,” said CEO Rene Haas.
“More customers moving to higher-value Armv9 technology combined with market share gains in cloud server and automotive resulted in strong royalty growth.
“The AI wave drove licensing growth as these new devices require Arm’s performant and power-efficient compute platform.”
The results are the second trading update since the company went public in New York, in what was seen as a snub to the London Stock Exchange where it spent 18 years before being delisted through an acquisition by SoftBank in 2016.
The firm’s previous results were less of a cause for celebration. While Arm reported record revenues back in November 2023, its previous sales outlook failed to impress markets.