Softbank Group Corp's stock climbed as much as 8.6%, marking its largest two-week gain, after its UK-based subsidiary ARM Holdings announced plans to begin selling its own semiconductors. The new business is projected to generate approximately $15 billion in annual revenue within five years.
In after-hours trading on Tuesday, ARM Holdings' American Depositary Receipts rose more than 8%.
Credit analyst Sharon Chen noted in a report that further increases in ARM's share price would benefit Softbank Group Corp by improving its loan-to-value ratio and other financial metrics.
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