The artificial intelligence (AI) revolution is driving big gains as it becomes more apparent that Arm will continue to be a large benefactor from AI tailwinds. While Arm is a semiconductor company, it doesn’t actually manufacture computer chips. Instead, it designs, develops, patents its architectures, licenses them, and collects royalties. It’s the ultimate asset-light business model. The migration of AI to the Edge is a boon for Arm Holdings as its architecture enables more power-efficient chips.

ARMv9, has many features that help optimize AI and machine learning (ML) processes, including scalable vector extensions (SVE2), scalable matrix extensions (SME), and confidential computing architecture (CCA). ARMv9 isn’t just a single monolithic architecture but a rolling program of enhancements released over time.

As AI moves closer to the Edge with PCs, laptops, smartphones, and mobile devices, more companies are licensing ARMv9. Most importantly, the royalty rates are double those of earlier versions, which sets Arm up for bountiful future gains for years to come.

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