Semiconductor stocks are experiencing a surge in the wake of Arm’s highly anticipated initial public offering (IPO). This optimism for the sector is further fueled by the excitement surrounding artificial intelligence.

Nvidia, the largest chip maker in terms of market capitalization, saw its shares rise by 0.9% in premarket trading. Advanced Micro Devices (AMD) also experienced a 0.5% climb, while Micron saw a 0.9% increase.

Arm, a chip designer based in the United Kingdom, priced its U.S. IPO at $51 per share, which is at the top end of the expected range. This IPO is the largest of the year so far and assigns a market value of nearly $55 billion to the company. On Thursday, Arm made its debut on the Nasdaq under the symbol ARM.

It’s worth noting that Arm specializes in designing chips for various semiconductor manufacturers, including those used in most smartphones. However, Arm does not directly manufacture chips.

The positive effects of Arm’s IPO were also seen by other companies worldwide. Taiwan Semiconductor’s American depositary receipts (TSM) rose by 0.8% early on Thursday after the stock finished 2.2% higher in Taiwan. Similarly, ASML Holding in the Netherlands saw a 0.4% increase, while Infineon in Germany remained relatively stable.

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