Shares of British chip designer Arm surged more than 50% after its earnings report surprised analysts and suggested artificial intelligence may be driving a recovery in the semiconductor industry.

The company said it made a record $824 million of sales in its last quarter and projected as much as $900 million for the quarter currently underway.

Both figures were above what Wall Street expected.

Arm’s shares reached about $120 on Thursday morning, sending its market value to over $117 billion.

WSJ