"Nobody disputes that this is a quality company that has substantial sales, substantial profits..." said Jay Ritter, a professor specializing in stock launches at the University of Florida."The question is about future growth potential."
Some analysts have pointed out that Arm designs microprocessors, or CPUs, while the revolution in generative artificial intelligence relies on more powerful GPUs, or graphics processing units.The IPO also poses a large-as-life test for the capital markets, which have not seen a stock introduction of similar magnitude since that of American e-vehicle maker Rivian, valued at $77 billion in November 2021.
After what he called"a very long desert of new issue," Roberts said he expects Arm is"really going to emerge as a bellwether technology stock." "So you've got a lot of the Wall Street community focused on this deal being done correctly, and well," particularly since Arm decided to place its bet on Wall Street rather than London.SoftBank also lined up a prestigious group of clients, from Apple to Nvidia, prepared to invest $735 million in Arm.