Shares surge 40pc in British tech champion that listed in New York

Arm’s microchip technology is most effective in low-power devices such as smartphones and internet of things gadgets, which are expected to increasingly use AI in the coming year.

However, an increasing proportion of its revenue came from China, which has been seen as a potentially troublesome business due to US sanctions on the country and because Arm’s business there is dependent on a joint venture with a Chinese company. 

Arm executives told analysts that 25pc of revenues came from China, up from 20pc three months earlier.

Profits halved to $87m, due to an increase in research and development costs as well as costs associated with employee share awards following last year’s float.

Shares were boosted by Arm raising its full-year revenue forecasts and saying it planned to spend less than originally thought.

SoftBank and other Arm insiders will be able to sell shares in the coming weeks as a 180-day freeze following the listing ends.

SoftBank said on Thursday that it had made a 950bn yen (£5bn) profit in its fiscal third quarter, boosted by investments such as Arm and the food delivery app DoorDash.

Masayoshi Son, the company’s billionaire founder, has said he is looking to return to making big bets on technology companies after slowing down investments following failures such as the office company WeWork.

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