SoftBank's stock price surges as subsidiary Arm plans to sell its own chips

SoftBank Group’s stock price rose as much as 8.6% at one point, marking its biggest gain in two weeks. Arm Holdings, its UK subsidiary, said it will begin selling its own chips, and expects this business to generate roughly $15 billion in revenue per year within five years.

In after-hours trading on Tuesday, Arm’s American depository receipts rose more than 8%.

In a report, credit analyst Sharon Chen noted that further gains in Arm’s stock price would benefit SoftBank because it could improve its loan-to-value ratio and other aspects.

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