Arm Holdings CEO Rene Haas Says Experts Underestimated Rapid Advances in Artificial Intelligence: ‘Analysts Maybe Didn’t Fully Understand…’ – Advanced Micro Devices (NASDAQ:AMD), ARM Holdings (NASDAQ:ARM)

SoftBank Group auxiliary Holding arms ARM CEO Rene Haas He believes that analysts have underestimated the pace of development of artificial intelligence.

What happened: Haas made these comments during an interview with Yahoo Finance’s Overtime of market domination on Monday. He noted that artificial intelligence will significantly change people’s lives and that 70% of devices in the world use Arm chips, which positions the company well in the AI ​​race.

He said: “I think with all due respect that analysts have perhaps not fully understood or underestimated the pace of developments,” referring to the rapid development of artificial intelligence.

Haas also highlighted the potential of AI to drive growth in the smartphone and ARM sectors, given that most devices already use ARM chips and software.

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Why is it important?: Arm Holdings was recently added to the Nasdaq 100 Index, marking a major milestone for the British semiconductor company. Since its September debut on the stock exchange, Arm shares have increased by almost 140%. Haas expressed pride in the company’s inclusion on the Nasdaq 100, describing the day as a “very, very cool day” for both employees and the company.

Arm Holdings’ explosive growth in the AI ​​sector is not an isolated event. In May, Arm announced plans to launch a new AI chip division, with the first products expected next year. The move is part of SoftBank Group’s $64 billion strategy to transform itself into an artificial intelligence powerhouse. The new division aims to develop a prototype by spring 2025 and begin mass production in fall 2025.

In the same month, analysts predicted that Arm Holdings could challenge industry giants such as Qualcomm Inc QCOM, Intel company INTAND Advanced Micro Devices, Inc AMD in the AI ​​chip market. Despite some concerns about a potential slowdown in AI spending, Arm’s fiscal 2025 revenue guidance remains strong.

However, the company’s journey has not been without challenges. A legal dispute with Qualcomm reportedly threatens to disrupt the supply of new AI-enabled laptops. This ongoing battle has raised concerns about the future of AI-enabled PC shipments.

Reduction: Arm Holdings Plc shares closed at $151.07 on Monday, down 5.76%. Shares fell a further 0.97% in after-hours trading. According to data from Benzinga Pro, Arm Holdings shares have seen a significant gain of 119.20% since the beginning of the year.

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This story was generated by Benzinga Neuro and edited by Kaustubh Bagalkote