Nvidia Is the Market’s Favorite Chip Stock. This Analyst Thinks Arm Belongs in the Same Tier.

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Arm is aiming for an IPO valuation of up to $52 billion despite some market skepticism. Susquehanna's Christopher Rolland says there are reasons to back the...

Arm is preparing for the biggest initial public offering of the year. Its mooted valuation has attracted some skepticism but there is reason to give the chip-design company the kind of premium garnered by stock market favorite Nvidia, according to analysts at Susquehanna Financial Group.

However, that’s still valuing Arm at a premium to other chip stocks. Susquehanna’s valuation for Arm is based on an enterprise value-to-sales multiple of 14 times its expected fiscal 2025 sales figure. Some market commentators, including Barron’s, have suggested Arm could struggle to achieve a significant premium.

 

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