### 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
- š SoftBank, the owner of Arm, has positioned the chip designer as a key asset for the conglomerate's AI-related companies.
- š° SoftBank valued Arm at $64 billion, but analysts value it around $47 billion.
- š» Arm does not sit at the center of the AI boom but is more AI-adjacent.
- š” Arm specializes in energy-efficient central processing units (CPUs) that can complement Nvidia's advanced semiconductors.
- š Arm's opportunity lies in providing intellectual property for AI and machine learning in devices used by end users.
- ā Analysts question whether 85% of SoftBank's portfolio companies can truly be described as AI-related.
SoftBank shares rise after its chip unit Arm files for a Nasdaq listing, South Korea's consumer sentiment weakens for the first time in six months, Hong Kong's inflation rate slows more than expected, UBS identifies stocks that could drag the Stoxx Europe 600 down 10%, and the 10-year Treasury yield hits its highest level since 2007.
SoftBank-owned Arm has filed for its initial public offering (IPO), which will be a major test for the IPO market that has been stagnant due to rising interest rates, and is a significant move for SoftBank as it pivots its focus to artificial intelligence. Arm's chip designs are found in almost all smartphones globally, and the company's listing has implications for SoftBank's rebound strategy.
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.
Arm Holdings, the designer of central processing units (CPUs), has filed an F-1 with the SEC in its first step towards an initial public offering (IPO), seeking a valuation of $60 billion to $70 billion despite a decline in revenue and net income in the past year.
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.
SoftBank's desired valuation for Arm's IPO may be too high, as investors are focused on medium-term operating profit rather than just revenue, and Arm would need to achieve implausible levels of growth and profitability to justify the target valuation.
SoftBank Group's chip designer Arm is seeking a valuation of more than $52 billion in its initial public offering, targeting the largest U.S. stock market flotation of the year.
Arm Holdings is preparing for a significant IPO that will be the largest of the year, although its valuation indicates that it won't reach Nvidia's level of success.
SoftBank has invested over $1 billion in Stack AV, a new autonomous trucking firm founded by the creators of defunct self-driving startup Argo AI, with hopes of revolutionizing the trucking and freight industries despite technological and regulatory challenges.
Arm Holdings, owned by Softbank, has received investor demand that is six times the amount it is seeking in its $5 billion stock market debut, making it more likely to reach its targeted price range of $47 to $51 per share.
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.
SoftBank Group CEO Masayoshi Son accepted the recommendation of his bankers to leave an extra $1 per share on the table for chip designer Arm Holdings' oversubscribed IPO, projecting a bigger pop when the stock debuts on Nasdaq, valuing Arm at $54.5 billion.
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.
SoftBank is reportedly seeking AI deals, including a potential investment in OpenAI, after the successful IPO of its Arm unit, with the company's founder and CEO, Masayoshi Son, planning to invest billions of dollars in AI technology.
Arm Holdings shares are dropping after a successful IPO, and there are concerns that the stock could fall further.
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%.
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.
