Arm Holdings CEO Rene Haas took a victory lap Thursday as the chip design firm’s stock saw its biggest single-day gain ever after beating Wall Street earnings and revenue estimates and offering a sunny forecast driven by demand for their services thanks to artificial intelligence.
In an interview on FOX Business’ “The Claman Countdown” ahead of the closing bell, Haas attributed his company’s success to plans it had put in place years ago to move beyond the smartphone market and into data centers and the automotive space.
“What we’re seeing now is that it’s really paying off,” Haas said. “We’re gaining market share in those areas. More and more, Arm technology is being used in those areas, and then when you get AI involved, my gosh, the need for ‘compute’ seems almost insatiable.”
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Arm is a chip architect that supplies core technology to companies including Apple and AI chip titan Nvidia. The company sells blueprints and other intellectual property to create computing chips that power most of the world’s mobile phones, but it has successfully diversified its business.
Haas said AI is now “everywhere,” which, he says, “bodes well for our growth.”
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The CEO said Arm is pulling in new customers from across industries, saying the company’s technology is now in both Teslas and Fords, Ring smart cameras and even LG appliances: “We’re in a lot of places that people don’t think.” He added that he cannot think of a car company right now that does not use Arm technology.
Arm’s rally represents a dramatic turnaround from its first month as a public company in late 2023 when shares sank. The stock lost as much as 26% of its value within a month of its Sept. 14 debut, but it has surged nearly 90% since then to $120.80 on Thursday.
Reuters contributed to this report.
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