Nvidia Surpasses Google and Amazon... ARM Emerges as the Second Nvidia

ARM's Stock Rises 29%... Triples Since IPO
NVIDIA Briefly Ranked 3rd in Market Cap During Trading

ARM Holdings, a UK semiconductor design company listed on the US stock market, has emerged as the 'second Nvidia.' As AI leader Nvidia surpassed Google and Amazon during trading to become the third-largest company by market capitalization, investors seeking the next Nvidia are flocking to ARM Holdings.

On the 12th (local time), Bloomberg reported that ARM's stock price rose 29%, recording a trading volume more than 10 times the three-month average. ARM closed the day at $148.98 per share.

ARM announced its earnings after the market closed on the 7th, and following better-than-expected results, its stock price rose 90% over the next three trading days. Since its IPO in September, the stock price has nearly tripled. Its current market capitalization exceeds $150 billion (approximately 199.425 trillion KRW), surpassing the world's largest aircraft manufacturer Boeing and the leading US telecommunications company AT&T.

Dennis Dick, a trader at TripleD Trading, said, "Algorithm-based investors are participating, individual investors are buying, and people are purchasing options."

Bloomberg expects ARM's upward momentum to continue for the time being. Investors are optimistic about the stock price increase and are investing in short-term call options. According to Bloomberg, the most actively traded option is the $185 call option expiring on the 16th, with over 54,000 contracts traded. Based on the closing price of $148.97 on the 12th, this implies an expected stock price increase of 28%.

Chris Murphy, co-head of derivative strategies at Susquehanna Financial Group, analyzed that the explosive option trading volume comes from investors searching for the 'next Nvidia,' and the increase in bullish options is likely to help drive the stock price higher. In its earnings report on the 7th, ARM stated that more companies are licensing ARM's central processing units (CPUs) for AI execution, and the company is charging higher fees for advanced designs.

So far, the biggest beneficiary of AI has undoubtedly been Nvidia. Nvidia continued its upward trend after the market opened, rising more than 3% intraday. At one point, its market capitalization reached $1.83 trillion (approximately 2,432.985 trillion KRW), making it the third-largest company by market cap after Microsoft (MS) and Apple. It surpassed Alphabet, Google's parent company ($1.82 trillion), and Amazon ($1.81 trillion). Discussions about joining the 'trillion-dollar club' and entering the 'Big 3' are underway.

Nvidia's graphics processing units (GPUs) are the most efficient for AI computation, currently holding about 80% of the AI semiconductor market share. Its stock price surged more than 45% this year alone and rose approximately 220% over the past year.