Arm Holdings Faces Crucial Test as AI Chip Star's Lockup Expires
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Arm Holdings stock has surged over 80% so far in 2024, beating out even Nvidia in the AI chip space.
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The company will face a big test when its post-IPO lockup period expires on Tuesday, allowing insiders like Softbank to sell shares for the first time.
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Softbank owns over 90% of Arm's shares and is unlikely to sell a large portion to avoid crashing the stock price.
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Arm has competitive advantages in AI chips with its licensing model, relationship with Nvidia, and power-efficient architecture.
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Long-term investors should see any lockup expiration selloffs as a potential buying opportunity for this fast-growing AI chipmaker.