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Arm trades up in IPO debut that values firm above opening valuation of $54.5B

Sep 14, 2023 - venturebeat.com
Arm, a chip architecture firm owned by SoftBank Group, has raised $4.7 billion in an initial public offering on Nasdaq, valuing the company at over $54.5 billion. The UK-based company, which has a 99% market share in mobile phones, debuted above its share price of $51, starting at $56.65 and rising to $60.06. Despite a recent dip in sales due to a weak global market, Arm has been expanding into the automotive chip market and other areas.

The company's chips are foundational to the modern electronics industry, with demand for Arm chips growing in various sectors. Arm is also facing competition from rivals like Intel, Advanced Micro Devices, MIPS, and an open-source alternative, RISC-V. Despite the competition, Arm remains 90% owned by SoftBank and is focusing on growth markets like AI, automotive, computer infrastructure, IoT, and embedded chips in appliances and other devices.

Key takeaways:

  • Arm, the chip architecture firm owned by SoftBank Group, raised $4.7 billion in its initial public offering, valuing the company at over $54.5 billion.
  • The company has a 99% market share in mobile phones and has been expanding into markets such as processors for PCs and servers.
  • Arm's chips are foundational to the modern electronics industry, with the company's architecture being used in a wide range of devices from smartwatches to cloud infrastructure.
  • Despite facing competition from rivals like Intel, Advanced Micro Devices, and open-source alternatives, Arm maintains a strong position due to its broad software ecosystem and focus on performance and power efficiency.
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