Shares in ARM Holdings Plc, the UK-based chip designer, soared 19.7% to 945 pence on Friday amid reports that it was about to sign a major deal with Texas Instruments. The company would make no comment on the rumor but the shares continue to push ahead after Goldman Sachs rated the company as a market outperformer.
The bank said that ARM results due on July 21 would show continued high momentum and an increasing presence in new growth applications beyond handheld electronics. Goldman forecasts a jump in pre-tax profits of 52% to 3.4m pounds ($5.3m) with revenue rising by 42% percent to 14m pounds ($22.1m).
ARM is a constant takeover candidate and last week Deutsche Bank AG revealed it had built up a holding of 10.1% of the shares.
