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Is It a Good Idea to Invest in the Arm IPO?

Tags: arm ipo

Is ARM publicly traded now? How much are ARM shares? How much will the ARM IPO cost? Where will the ARM IPO be listed? What is the expected ARM IPO valuation? If these are the questions gnawing in the financial roulette of your cards, we’d say that you need to hold on tight, not go into it blind and decide whether the ARM IPO will be a winning bankroll or just beginner’s luck.  

ARM, the tech beacon under the SoftBank umbrella, has just made its debut on the IPO stage, sending ripples of excitement and skepticism alike through the investment landscape. In a mirror of a tightrope walk, ARM’s IPO comes at a time when the Initial Public Offering (IPO) market is struggling to regain its former glory, dampened by the loom of rising interest rates. IPOs have been cast aside as riskier ventures in recent times. 

To touch the chipmaker Arm Ipo or not? (Image Courtesy – Freepik)

ARM is renowned for its architectural prowess of being the mysterious mastermind behind 99 percent of smartphones worldwide. Both rivals iPhones and Android phones bow down to ARM chips in a very poetic fashion of modern communication. 

Is ARM Publicly Traded Now? 

Yes. After being acquired by SoftBank for the biggest-ever purchase in the IoT sector ($32 billion in 2016), it demonstrated SoftBank’s appetite for strategic supremacy. IoT was the drumbeat of the era and the ARM IPO is now the most-awaited tech IPO of 2023. But is there another spectrum to this? 

ARM’s parent company, SoftBank has sought a comeback from the tech market downturn and hoped to score a shift in its investment paradigm. Orchestrating a move towards the currency of the future, which is AI, the ARM IPO will either become SoftBank’s phoenix to supremacy, or just land a thud in the ashes of the somber tech market. 

Although venerated for its chips, ARM isn’t in the business of churning out chips. Instead, it crafts the blueprints, the very DNA that makes chips tick. This neutrality bestowed it the moniker of “Switzerland” in the tech world, as its designs found homes in smartphones, laptops, and even server processors.

What Is The Expected ARM IPO Valuation?

According to Reuters, SoftBank had previously planned to sell nearly 10 percent of ARM’s shares, gracing the ARM IPO’s valuation between $60 billion – $70 billion.

ARM’s CEO Rene Haas is definitely confident that ARM’s IPO will work wonders because of the company’s omnipresence in every device out there. 

“Given the fact that we license the technology to all the major players in the industry, no one can really afford to miss a product cycle or scale back on R&D or not do a product.”

How Much Will The ARM IPO Cost?

Banking on the popularity of ARM’s chips, SoftBank had initially aimed to raise $8 billion – $10 billion on ARM’s IPO. But with the latest scintillating move of buying Vision Fund’s stake in the company, the ARM IPO could be transacted at more than $64 billion, based on SoftBank’s filing.   

Where Will ARM Be Listed?

ARM’s modus operandi is captivatingly simple yet astonishingly impactful. It licenses its architectural ingenuity to other companies, enabling them to craft their own systems. Recent endeavors saw ARM embracing the role of a chip designer rather than just a chipmaker – a transition that could potentially mint greater fortunes. 

And after all, ARM’s citadel stands in Cambridge, England. So it spurred the government to try its best to push for the ARM IPO to be listed on the London Stock Exchange. However, SoftBank first opted to go with New York’s NASDAQ for ARM’s IPO debut, potentially planning a dual listing for the London Stock Exchange as well.  

Moreover, it is important to know that the ARM IPO is not a linear narrative. SoftBank’s attempted tryst with Nvidia evoked stringent regulatory tempest. And hence, ARM’s IPO became a thing of independent existence. ARM’s chips have embraced the horizon, extending from wearables to connected cars.

So that brings out the final question.  

Is ARM IPO A Good Investment?

The ARM IPO is proclaimed to be a strategically integral point of pivot for the UK’s domestic chip industry. The sector is expecting to surge above £1 billion ($1.3 billion) in investments. 

The tech boom of 2021 is nowhere near being replicated yet SoftBank seems to move ahead with ARM’s listing even as US markets dangle unsteadily. This reflects on ARM to be touting itself as the linchpin of an AI revolution. From pocket-sized smartphones to huge data centers, ARM’s chips are fueling finesse into AI engines. 

It will be interesting to see if the chip designer will shine bright in what’s expected of it, as ARM shares are trading 82 percent above their IPO price.

The post Is It a Good Idea to Invest in the Arm IPO? appeared first on Technowize.



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Is It a Good Idea to Invest in the Arm IPO?

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