### Summary
Investors are waiting for Arm's Nasdaq IPO filing to determine if the chip designer will experience "exponential growth" due to the AI boom, as CEO Masayoshi Son claims.
### Facts
- 📈 SoftBank, the owner of Arm, has positioned the chip designer as a key asset for the conglomerate's AI-related companies.
- 💰 SoftBank valued Arm at $64 billion, but analysts value it around $47 billion.
- 💻 Arm does not sit at the center of the AI boom but is more AI-adjacent.
- 💡 Arm specializes in energy-efficient central processing units (CPUs) that can complement Nvidia's advanced semiconductors.
- 🌐 Arm's opportunity lies in providing intellectual property for AI and machine learning in devices used by end users.
- ❓ Analysts question whether 85% of SoftBank's portfolio companies can truly be described as AI-related.
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 Holdings, backed by SoftBank Group, plans to choose a US IPO as it faces a 1% decline in annual revenue, indicating a slowing smartphone market, and its stock market launch is expected to revive a lacklustre IPO market.
Arm, the British chip designer, has published a prospectus for its IPO on the Nasdaq exchange next month, with an expected valuation of $60bn to $70bn, attracting interest from tech giants such as Amazon, Apple, and Nvidia.
Nvidia's plan to acquire Arm Holdings for $40 billion is discussed in a video, cautioning against buying into the AI and Nvidia hype surrounding Arm's initial public offering (IPO).
Leading technology companies, including Apple, Nvidia, and Alphabet, have agreed to invest in Arm Holdings' initial public offering, which is targeting a valuation between $50 billion and $55 billion, according to sources.
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.
Retail investors should be cautious when buying shares of Arm Holdings' upcoming IPO, as recent data shows that individual investors tend to lose money on blockbuster IPOs, with the 10 biggest US IPOs in the past four years down an average of 47% from their first-day closing price.
Arm Holdings receives its first Buy rating from the Street, even before completing its IPO.
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.
Arm Holdings stock begins trading on the Nasdaq at $51 per share, meeting expectations, while markets analyze inflation figures and the potential impact on the Federal Reserve's rate-setting policy.
Arm shares surged 25% on its first day of trading on Nasdaq, boosting US stocks, while the European Central Bank's rate decision also contributed to positive market sentiment.
Arm stock is experiencing a second day of gains and is currently more popular than Apple.
Arm stock is now trading in rare territory, but the company needs to prioritize AI development in order to maintain its growth.
Bernstein has given its first-ever sell rating to Arm Holdings, stating that the stock may plummet due to competition, a saturated phone market, and risks associated with China and AI hype.
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.
Shares of chip designer Arm Holdings fell 4% after an analyst expressed concerns about the company's future and emphasized the need for stronger earnings in Fiscal Year 2023, assigning a Hold rating on the stock with a price target of $50 per share.
Arm Holdings and Nvidia, two chip stocks with strong competitive advantages, have gained favor among investors, but their high valuations are not justified by their growth prospects, making them overpriced investments.
Analysts at Susquehanna Financial Group advise against buying Arm Holdings' chip-design stock despite its successful initial public offering in the New York market.
ARM Holdings' lackluster performance following its IPO debut raises questions about the company and the IPO market, as investors may be rotating out of high-risk assets and dampening the prospects for new listings.
A bevy of Wall Street analysts are optimistic about Arm Holdings' initial public offering, suggesting that investors are too pessimistic about the chip-design company.
