Arm, a UK chip designer, said it was witnessing greater royalty and licencing revenue amid robust AI demand, raising its year-end expectation and sending shares up more than 20% in after-hours trade on Wednesday.
Arm CEO Rene Haas stated that the company had profited from the “profound opportunity” created by the demand for new artificial intelligence applications being implemented by major technology companies.
The company’s outstanding results — which provide the fundamental architecture for chips made by major technology companies — prompted it to reiterate its claim that a revolutionary shift in demand for AI processing power will drive the next phase of its growth.
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