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Retail investors pile into Arm stock on the first day of trading, seeking greater exposure to the AI boom

Sep 15, 2023 - markets.businessinsider.com
Arm, a UK-based chip designer, had a successful market debut, becoming the largest IPO in the US since 2021. The company's stock rose by 25% on its first day of trading, with over 20,000 purchase orders placed by retail traders on Fidelity's platform. Arm's technology is used in over 90% of smartphones, and the company claims that about 70% of the world's population uses products based on its designs.

The successful IPO, which raised nearly $5 billion for SoftBank, has sparked hopes of a revival in the IPO market after a two-year slump. However, questions remain about whether Arm's successful launch can influence the broader IPO market, as some strategists argue that its debut isn't a typical representation for companies looking to go public.

Key takeaways:

  • Arm's initial public offering (IPO) became the largest in the US since 2021, with its stock rising 25% on its first day of trading.
  • Over 20,000 purchase orders were made by retail traders on Fidelity's platform, surpassing popular stocks like Tesla and Nvidia.
  • The company's successful debut raised nearly $5 billion for SoftBank and sparked hopes of a revival in the IPO market after a two-year slump.
  • Despite its success, questions remain about whether Arm's launch can influence the broader IPO market, as some strategists argue that its debut isn't a reliable indicator for other companies looking to go public.
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