Arm Holdings is aiming to become the next big chip stock and is preparing for its public listing, while focusing on establishing itself as a leader in the artificial intelligence sector.
Arm, the chip designer owned by Softbank, has filed for an IPO on the Nasdaq, with the valuation yet to be specified, while tech stocks remain resilient despite surging bond yields, and Microsoft restructures its mega-merger with Activision Blizzard to secure approval from UK regulators.
Chip designer Arm Holdings is planning to ask investors to pay between $47 and $51 per share for its initial public offering (IPO), valuing the company at roughly $50 billion to $54 billion and potentially making it the most valuable company to list in New York since Rivian Automotive.
Arm Ltd.'s public listing is facing lowered expectations, with the chip designer aiming to raise $5 billion to $7 billion and a valuation of $50 billion to $60 billion, down from previous targets, due to factors such as China risks and slowing smartphone market growth.
AMC Entertainment Holdings Inc.'s shares fell 4.2% in premarket trading after filing a prospectus for the sale of up to 40 million shares, resulting in a record-low close.
Arm Holdings has priced its initial public offering at $51 per share, at the top end of the expected range, giving the chip design company a valuation of $54.5 billion.
Shares of Alphabet Inc. Cl A fell 0.51% as the stock market experienced a dismal trading session, although it outperformed some of its competitors.
Arm Holdings shares are dropping after a successful IPO, and there are concerns that the stock could fall further.
Arm Holdings' shares fell after Bernstein initiated coverage on the chip designer with an underperform rating, suggesting it may not benefit as much from artificial intelligence as some investors anticipate.
Arm Holdings' stock had a strong IPO, but recent sell-offs and high valuations have raised concerns about its future performance, leading to a "Sell" rating and a price target of $46 per share from Bernstein analyst Sara Russo. While Arm is a frontrunner in the semiconductor industry and has value in its architecture, investors should temper their expectations, as its exposure to AI is limited compared to companies like Nvidia. Analyst ratings on ARM stock range from "Buy" to "Sell," with an average price target of $51.67, implying a potential downside of 2.3%.
Analysts at Susquehanna Financial Group advise against buying Arm Holdings' chip-design stock despite its successful initial public offering in the New York market.
German sandal maker Birkenstock Holdings Ltd.'s stock fell 12.6% in its trading debut, reflecting investor caution towards new deals and a competitive casual-footwear market.
Shares of BlackRock fell around 1% despite beating third-quarter profit estimates, as the asset manager's net inflows dropped and it signaled an increased interest in acquisition targets.
