The stock of microchip designer Arm Holdings (ARM) rose 29% on Feb. 12, helping to raise its share price by 99% over the last five trading sessions.
At nearly $150 U.S. per share, Arm’s stock is now on the cusp of doubling since the British microchip and semiconductor company announced its latest earnings report on Feb. 7.
Arm’s better-than-expected fiscal third-quarter earnings and its burgeoning role in artificial intelligence (A.I.) have sparked a furious rally in its share price.
The stock has nearly tripled since Arm’s initial public offering (IPO) last September and now has a market capitalization of $153 billion U.S, nearly as large as rival Intel’s (INTC) market cap.
Last week, Arm highlighted soaring A.I. demand for the microchips it designs and added that it is moving into new markets such as cloud-computing and motor vehicles.
Arm’s chips are found in nearly every type of smartphone and many personal computers (PCs).
The company makes money off royalty payments.
Over the past week, Arm’s daily trading volume has exceeded 100 million shares, or more than 10 times the average for the stock.
Despite the big run higher, Arm’s stock could be in for a correction. In March, the 180-day post-IPO lockup period expires, allowing insiders to sell their shares in the company and take profits.