ARM (#ARM) INITIAL PUBLIC OFFERING (IPO) (EXPECTED FIRST DAY OF TRADING: SEPTEMBER 14, 2023)
ARTIFICIAL INTELLIGENCE
- ARTIFICIAL INTELLIGENCE (AI): CHATGPT SPARKS AI COMPETITION AMONGST MAJOR TECH FIRMS, FUELLING DEMAND FOR AI PROCESSING PRODUCTS: According to reports, Microsoft, Alphabet and Meta are set to invest $90B into AI technology development. OpenAi, the company that invented ChatGPT, used Nvidia GPU chips to create it. Nvidia unveiled its new Grace Hopper chip for generative AI applications, which is based on Arm architecture. In other words, Nvidia cannot make chips without ARM.
ARM
- COMPANY: ARM isn’t a chipmaker itself. Rather, the company is responsible for coming up with the “architectures” — or overall designs, including components and programming language instructions that other companies use to build chips. Today, 99% of smartphones use ARM processors.
- MARKET: Arm chips are made by companies including Amazon, Alphabet, AMD, Intel, Nvidia, Qualcomm, and Samsung. Its technology is also included in Apple’s chips for iPhones. Arm said that its technology was included in over 30 billion chips shipped in its fiscal 2023.
- HOW IT DOES MAKE MONEY: Arm typically takes a fee on every chip that is shipped using its technology.
ARM: FINANCIALS
- REVENUE IN FISCAL 2023: $2.68 BILLION. This is still down from 2022’s $2.7 billion.
- NET INCOME IN FISCAL 2023: $524 MILLION. This is still down from 2022’s $549 million.
- CASH: $2.2 BILLION.
ARM: PRICE ACTION
- EXPECTED (IPO) OPEN PRICE: $47-$51 a share
- IPO CAPITAL RAISE: ~$4.9 billion.
- MARKET CAPITALIZATION: $50- $54 billion.
- STOCK EXCHANGE: NASDAQ
- IPO DATE: SEPTEMBER 13. AVAILABLE FOR TRADING: SEPTEMBER 14.
INITIAL PUBLIC OFFERING (IPO): FIRST DAY OF TRADING
- 2000- 2022: AVERAGE FIRST DAY RESULT = 21.11%
Source: Nasdaq.com
IPOs OF SOME OTHER BIG TECH COMPANIES:
Data Source: Bloomberg
*Please note that past performance does not guarantee future results.