The chip design company controlled by SoftBank, jumped nearly 25% during its first day of trading Thursday after selling shares at $51 a piece in its initial public offering.

On Wednesday, Arm priced shares at the upper end of its expected range. On Thursday, the stock first traded at $56.10 and ended the day at $63.59.

It’s a hefty premium for the British chip company. About a $60 billion valuation, Arm’s price-to-earnings multiple would be over 110 based on the most recent fiscal year profit. That’s comparable to Nvidia’s valuation, which trades at 108 times earnings, but without Nvidia’s 170% growth forecast for the current quarter.

Arm’s architecture is used in nearly every smartphone chip and outlines how a central processor works at its most basic level, such as doing arithmetic or accessing computer memory.

“Our business model is unique in that we don't design or manufacture computer chips. Instead, we design one of the very important components that go into the computer chip, the processor, the brain of the chip,” said Thornton. “Think of what we provide as a blueprint. We license those processor designs to the companies who design or manufacture computer chips. They pay us an initial license fee, and then a royalty fee on every chip that uses our designs.”

“There was interest to buy more than what was indicated, but we wanted to make sure we had a diverse set of shareholders,” Child said.