Arm IPO: Should Investors Buy Into the Hype?


Undoubtedly one of this week’s biggest developments, chip designer Arm Holdings ARM debuted on the Nasdaq on Thursday. Shares had a strong showing, soaring more than 20% in yesterday’s session, listed initially at $51 per share.

It’s an exciting time for investors, especially following a barren 2022 landscape for IPOs. SoftBank, the controller of Arm Holdings (90% stake), took the company private back in 2016. But given the hype, what is there to know about the company? Let’s take a closer look.

Arm Holdings Overview

Arm Holdings constructs, develops, and licenses high-performance, low-cost, energy-efficient IP solutions for CPUs, GPUs, NPUs, and other interconnected technologies.

The company’s product portfolio is relied upon among many high-profile semiconductor companies and other original equipment manufacturers (OEMs). Breaking down the business in simpler terms, Arm licenses instruction sets for modern chips to partners who utilize it for their preferred applications.

Tech Heavyweights Are Interested

Many technology heavyweights, a list that includes Advanced Micro Devices AMD, Apple AAPL, Alphabet GOOGL, and NVIDIA NVDA, all expressed interest in ARM shares, further stating the excitement surrounding the IPO.

These heavyweights have led the market’s rebound in 2023, as we can see below.

Image Source: Zacks Investment Research

Just in early September, Arm unveiled it struck a new long-term agreement with Apple extending beyond 2040, continuing an already long-standing relationship. Apple has and continues to use Arm architecture extensively within the iPhone, iPad, and Macs.

And in a recent SEC filing, Arm Holdings revealed that more than 260 companies reported shipping Arm-based chips in the fiscal year ended March 31st, 2023, a list that includes NVIDIA, Advanced Micro Devices, and Qualcomm QCOM.

We’re all familiar with the AI hype surrounding NVIDIA in 2023, causing shares to soar. Interestingly, Arm Holdings is already working with NVIDIA to deploy technology to run AI workloads. Arm’s CPUs presently run AI and ML (machine learning) workloads in billions of devices.

Analysts have become notably bullish on NVDA’s outlook amid the artificial intelligence hype, helping land it into the highly-coveted Zacks Rank #1 (Strong Buy). As we can see below, the revisions trends have been potent across all timeframes, and analysts have been in full agreement.

Zacks Investment Research
Image Source: Zacks Investment Research

Bottom Line

With all of the attention surrounding Arm Holdings’ ARM IPO, it’s worthwhile to take a quick look under the hood of the company to understand the hype better.

And it’s easier to understand the excitement when seeing which companies have also shown interest, a list that includes the likes of many investor-favorite technology heavyweights.

It’s more than reasonable to assume the excitement surrounding shares will last some time, especially following Wall Street’s obsession with its new shiny toy, artificial intelligence.

Zacks Names #1 Semiconductor Stock

It’s only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.

With strong earnings growth and an expanding customer base, it’s positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.

See This Stock Now for Free >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report

Apple Inc. (AAPL) : Free Stock Analysis Report

Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report

NVIDIA Corporation (NVDA) : Free Stock Analysis Report

ARM Holdings PLC (ARM): Free Stock Analysis Report

Alphabet Inc. (GOOGL) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



Source link

Visited 1 times, 1 visit(s) today

Related Article

What Bubble? Asset Managers in Risk-On Mode Stick With Stocks

Photographer: Michael Nagle/Bloomberg (Bloomberg) — There’s a time when investments run their course and the prudent move is to cash out. For global asset managers who’ve ridden double-digit gains in equities for three straight years, that time is not now. “Our expectation of solid growth and easier monetary and fiscal policies supports a risk-on tilt

Could Buying SoFi Stock Today Set You Up for Life?

It’s up 92% this year. The S&P 500 is hitting new highs, and there are signs of a potential stock market bubble. But whatever happens in the short term, the stock market has been a reliable wealth generator for decades, as long as investors hold through volatility. Is there a stock market bubble? Will it

Kids invested $70 million in 2025. What did they buy?

Dec. 7, 2025, 5:05 a.m. ET It’s been a rough ride for many parents this year with job losses mounting and inflation that just won’t go away. But amid all that, kids have been the bright spot, according to Greenlight’s family money app. In 2025, Greenlight kids and teens up to age 17 invested more

The Smartest Dividend Stock to Buy With $100 Right Now

Make sure your portfolio is prepared for any kind of market with dividend stocks. As 2025 comes to a close, the S&P 500 is up 16.6%, and there’s real potential of a third year in a row of double-digit gains for the index. Does that spell trouble for 2026? Not necessarily. However, investors should be

Marvell (MRVL) Wins $90 Target as Data Center Momentum Accelerates

Marvell Technology, Inc. (NASDAQ:MRVL) is one of the AI Stocks Analysts are Tracking Closely. On December 3, Goldman Sachs raised the firm’s price target on the stock to $90 from $80 and kept a “Neutral” rating on the shares. The price target raise follows Marvell’s third quarter fiscal year 2026 financial results. “Marvell delivered record

Prediction: This Will Be the First Tech Company to Split Its Stock in 2026

Several companies in big tech have split their stock in recent years. As the end of 2025 approaches, it’s looking like another strong year for the stock market. As of this writing (Dec. 2), the S&P 500 (^GSPC +0.19%) and Nasdaq Composite (^IXIC +0.31%) have gained 16% and 21% on the year, respectively. In a

Salesforce Is One of the Dogs of the Dow. Should You Buy the Dip in CRM Stock Now?

The prestigious Dow Jones Industrial Average ($DOWI), home to 30 blue-chip leaders across tech, finance, healthcare, and consumer goods, remains a key pulse check on corporate America’s performance. And while it hasn’t matched the stronger gains of the S&P 500 Index ($SPX) or the tech-heavy Nasdaq Composite ($NASX) this year, the Dow is far from

3 Reasons Costco Stock Is Struggling

Costco’s business continues to perform well. But its stock faces a lack of catalysts and a sky-high valuation. Costco Wholesale (COST 0.13%) shares are slightly negative for 2025 even as the S&P 500 posts strong gains. What gives? There’s a lot to like about the business. The membership-based wholesale retailer’s sales growth remains solid, and

The Three Best Tech Stocks to Buy Before 2026

Investors may consider putting these reasonably priced, growth-value hybrid companies under their tree. ‘Tis the season to make smart buys. After you’ve completed your holiday shopping for loved ones, find a little time to go purchase something nice for yourself. Alphabet (GOOG +1.16%) (GOOGL +1.15%), Micron Technology (MU +4.66%), and Cisco Systems (CSCO +0.27%) are

What Is One of the Best Tech Stocks to Hold for the Next 10 Years?

Sticking with this winner should pay off for investors. Nvidia (NVDA 0.56%) has been one of the top-performing tech stocks in recent years. The shares have increased by 22,000% over the last 10 years, 1,230% in the previous five years, and 30% in the last 12 months, outpacing the Nasdaq Composite‘s 20% one-year return. While

SoFi’s Stock Is Falling Today. There Are 1.5 Billion Reasons Why

The fintech disruptor just announced a surprising equity raise. SoFi (SOFI 6.15%) has been one of the stock market’s better performers in 2025, with shares up by 77% year-to-date. In a nutshell, the fintech disruptor’s business has been growing rapidly and more profitably than most experts had predicted. However, today is another story. On Friday,

Where Will Nvidia Stock Be in 3 Years?

Over the previous three years, Nvidia’s (NVDA 0.56%) stock price performance has been nothing short of explosive — and this isn’t because of speculation. The company is selling its cutting-edge graphics processing units (GPUs) almost as fast as it can get them made. And demand shows no signs of letting up, as big tech companies

The Most Vulnerable AI Stock if the Bubble Pops

Nvidia is the world’s largest company, and it gets most of its revenue from AI spending. There are growing concerns about a potential bubble in the AI sector of the stock market. Several companies could fall victim to an AI bubble bursting, but few are as vulnerable as Nvidia (NVDA 0.56%) if AI spending were

From 2600% gain to 86% wipeout, crypto’s hottest trade collapsed

(Bloomberg) — What began the year as one of the best trades in the stock market has, in a matter of months, turned into one of the worst. An array of public companies thought they had found a sort of perpetual motion machine: Use your corporate cash to buy up Bitcoin or other digital tokens

S&P 500, Nasdaq, Dow rise as Fed-favored PCE inflation data cools

US stocks moved higher on Friday as Wall Street digested a cooling in the Federal Reserve’s preferred inflation gauge, increasing the odds that the central bank will cut rates next week. The S&P 500 (^GSPC) rose 0.3%, within striking distance of its first record close since October. The Nasdaq Composite (^IXIC) also gained about 0.3%,

許正宇:探索AI賦能中小企 轉化為競爭力 (19:06) – 20251205 – 即時財經新聞

他指出,政府一直把發展金融科技及應用人工智能列為重要戰略,於去年10月發表金融市場負責任應用人工智能的政策宣言,並相繼推出生成式人工智能沙盒、綠色及可持續金融科技概念驗證資助計劃、「FiNETech系列」活動以及「Fintech Connect」跨行業配對平台,金管局與數碼港攜手推出的生成式人工智能沙盒計劃已在今年4月進入第二期,聚焦加強AI治理,共有來自20家銀行及14家科技合作夥伴的27個用例獲選參與,為金融機構在風險可控的環境下測試前沿應用提供寶貴經驗。 他表示,生成式人工智能正從概念走向廣泛落地,逐步融入金融服務、客戶體驗、風險管理以及日常營運。越來越多本地企業開始把聊天機械人、智能文檔處理、數據分析助理等工具融入業務,根據市場機構今年全球調查,高達71%環球企業已至少在一個業務領域採用生成式AI,較去年上升6個百分點,在市場推廣和銷售方面的應用更高達42%,充分展現人工智能正在成為推動生產力提升的強大引擎。 其他報道 國航東航及南航公布日本相關航線退票安排 被指再欠供員工MPF 鮮芋仙:經營權11.1起轉由台灣總部接手 穩定幣First Digital據報計劃透過SPAC方式上市 現代牙科非執董陳冠峰饋贈控股股東Triera 50%股權予家族信託 HashKey據報最快下周開始接受投資者認購 喜相逢與哈囉租車內地10城市開展汽車租賃業務 鴻海11月營收升26%創同期新高 香港外匯儲備4294億美元 按月升0.77% 大埔宏福苑五級火|李嘉誠基金會匯豐中銀等多間企業捐款支援【不斷更新】 恒指收市升149點 港股連升兩周 遇見小麵跌27% 天域半導體跌30% 國產GPU摩爾線程首日掛牌升逾4倍 市值達2823億元 據報美國對沖基金公司Engineers Gate計劃在香港開設辦事處 大埔宏福苑五級火|匯豐恒生伙七機構推動火災善後工作 傳瑞幸咖啡插旗台灣 台經濟部發聲明回應 紅杉227億提收購意大利高檔運動鞋品牌Golden Goose 據報據聖誕節前完成 滬指終止三連跌 深證成指、創板指升逾1% 華納兄弟探索據報與Netflix開展獨家談判 百度午後曾彈逾7% 旗下AI晶片公司據報下季申港上市 王傳福:比亞迪內地銷量下滑因技術不夠領先 將公布重磅技術 調查:強積金第三季回報逾15% 市民平均滿意度5.2分僅僅合格 粵港灣控股終止部分配股協議 午後復牌 大埔宏福苑五級火|屈臣氏:透過NGO及房屋局發放過百萬元家電     Source link

0
Would love your thoughts, please comment.x
()
x