Arm expects to earn handsomely from a strong interest in AI this year. Softbank’s share price benefited last week from Arm’s good financial outlook. Softbank is the chip technology specialist’s largest shareholder.
In its financial results for the third fiscal quarter of 2024, Arm indicated the current AI boom is going to bring in a lot of revenue. This will happen through processors that should enable AI on more devices, such as smartphones and PCs, stated Arm during a call for investors.
The chip technology specialist’s AI-optimized processors are already in the latest high-end smartphone models from Samsung, Vivo and Xiaomi.
AI boosts sales Arm
According to Bloomberg, the value of Softbank shares rose 34 percent last week over three day. This is the fastest rise in the company’s share price in more than two decades. The rapid rise in Softbank shares was a possible result of the news of projected sales from Arm. Since Arm’s IPO late last year, Softbank still holds a majority 90 percent stake as its former parent company.
Arm revenue results
In the third fiscal quarter of 2024, Arm posted total sales of $824 million. This was 14 percent more than in the same period in 2022. For the fiscal fourth quarter, the chip technology specialist expects sales of between $850 million and $900 million.
According to Arm, sales for the entire fiscal year 2024 should reach between $3.15 billion and $3.20 billion.
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