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Arm (ARM) stock was up more than 6% on Wednesday afternoon as investors are increasingly bullish on the chipmaker’s position in the growing artificial intelligence market.

Yahoo Finance’s Dan Howley reports:

Intel (INTC) and AMD (AMD) are staring down a new competitor in the PC market: Arm.

The UK-based chip designer is making a fresh push into the space via Qualcomm (QCOM) and its Arm-based Snapdragon X Elite and X Plus chips, which are rolling out in laptops from companies ranging from ASUS and Acer to Dell, HP, and Lenovo in the coming weeks.

Arm is already the go-to platform for Apple (AAPL) and its M-series chips for its Mac line of laptops and desktops, but it’s had a rockier relationship with Microsoft’s (MSFT) Windows platform. There was 2012’s Surface RT, which couldn’t run certain apps, as well as 2022’s Surface Pro 9, which suffered similar compatibility problems.

But Microsoft, Arm, and Qualcomm say they’ve worked out the kinks — and that Arm-based PCs will be as reliable as Intel and AMD-based offerings. The proof? Microsoft turned to Arm-based Qualcomm chips to power its new Surface Pro tablet and Surface Laptop, rather than Intel or AMD processors.

Those Surface devices are part of Microsoft’s new Copilot+ PC standard, which essentially involves high-end laptops that can run native artificial intelligence apps, making the fact that Microsoft used Arm-based Qualcomm chips all the more interesting.

“The Microsoft Build moment, with Microsoft basically coming out and sort of anointing or declaring that the Snapdragon X Elite and the Qualcomm-based, Arm-based devices were the first to meet [Microsoft’s] Copilot+ standards, was a big inflection,” explained Daniel Newman, CEO of the Futurum Group.

“It was just a bit of a sea change that we haven’t seen in a long time in the industry,” he added.