After many twists and turns and a tumultuous flirtation with Nvidia, ARM’s IPO by its owner Softbank is now a reality. It took place last night, on September 14, 2023, and can be described as a success. The IPO was eagerly awaited, as it was not only the biggest in the US this year, but also one of the 5 biggest tech IPOs of all time. Within hours of the IPO, the share price had risen by 25% to $63.59 on the open market in a short space of time, bringing the company’s valuation to almost $68 billion. An effect that investors often watch closely in the first few hours. However, while the initial reaction was one of self-satisfaction, just a few weeks ago, some professionals were talking about a valuation of $60-70 billion…
ARM: Between positive communication and doubts
While everyone is scrutinizing this IPO, everyone has their own reasons. First, the global crisis, inflation and rising interest rates. Secondly, technological independence and relations with China. Finally, if we refocus on ARM, it should be noted that the company’s figures have recently come under pressure with the announcement of a drop in sales, mainly due to the persistent weakness of the smartphone market. Other analysts are also questioning ARM’s presence in the AI field and its future developments.
In addition to the public investment opened up by this IPO, it will be important to analyze the positions taken by companies such as AMD, Apple, Google, Intel, MediaTek, Nvidia, Samsung and TSMC as ” essential investors “. These commitments are probably more strategic than economic, at least in the short term.