Shares in chip designer Arm soar by more than 50% leaving it valued at $120bn

Arm is the world’s largest supplier of design elements for the processing chips used in smartphones. Photograph: Maksym Yemelyanov/Alamy

Shares in Arm have soared by more than 50% after raising profit and revenue forecasts amid red-hot demand for artificial intelligence technology, valuing the UK-based tech company at double the market capitalisation when it floated in September.

Shares in the world’s biggest supplier of design elements for processing chips used in products from smartphones to games consoles opened up 58% on the Nasdaq in the US on Thursday.