Arm stock price sees up to 93% rise since February quarterly earnings release

Arm share price continues to rise following the release of quarterly financial data on February 8. Since the last report by the British chip designer, the stock price has seen a 93% surge on Monday, February 12. More interestingly, the pricing saw a noticeable 29% jump on Monday alone.

With this, Arm's stock price has almost tripled since the initial public offering in September, closing at $148.97 on Monday. This puts the current market value of Arm at nearly $153 billion. To compare, the market cap of Intel is currently $186.16 billion, meaning the British chip company is a little over $33 billion behind the American company.

It isn't yet clear why Arm stock price saw such a surge on Monday. But the chip designer talked about charging double for the latest instruction set last week. This would account for 15% of all royalties, meaning the semiconductor developer can expand the margin and earn more from the new chips.

The strong royalty income of Arm, combined with a promising growth forecast, has made the company a favorite among AI investors despite its higher valuation than Nvidia or AMD.

Things may become more clear with the expiration of the 180-day post-IPO lockup next month. That would give a better idea of the valuation of Arm. As of now, SoftBank still owns 90% of the shares, meaning that its stake has seen an increase of more than $61 billion since the report on February 8.

Get a Raspberry Pi 5 starter kit from Amazon