Last week, the British company Arm reported its results for the previous fiscal quarter, investors were so inspired by the prospects for business development against the backdrop of the boom in artificial intelligence that over the past three trading sessions Arm’s capitalization has doubled, and in total since the IPO, the company’s shares have risen in price by about three times.
Image source: Arm
At the close of trading on Monday alone, Arm stock quotes rose 29.3% to $148.97 per share, and before the publication of the quarterly report last week they were worth about $77. In September last year, Arm entered the American stock market, placing shares at a price of $60.75 per share, but their price soon fell to $51.32, so current quotes are approximately three times higher than this level. In fact, yesterday Arm’s stock price peaked at $164, so the gain relative to the IPO period was even higher. At current levels, Arm’s capitalization hovers around the $150 billion mark, potentially warming the soul of the Japanese corporation SoftBank, which was unable to sell Arm assets to NVIDIA for $40 billion a couple of years ago, and after that was thinking about entering an IPO in the United States.
Interest in Arm shares was confirmed yesterday by their trading volume, which exceeded the average daily value over the previous three months by more than ten times. According to analysts, the growth in Arm stock prices is now being driven by investors’ keen interest in the topic of artificial intelligence, which previously concentrated on the securities of a limited number of issuers, and NVIDIA was among them. At the current capitalization value, Arm turns out to be more expensive than Boeing and AT&T. Demand for Arm shares is also fueled by their limited supply, as SoftBank remains the holder of 90.6% of the total, and overall 95% of Arm shares are distributed among its ten largest shareholders. In the case of NVIDIA, for example, the ten largest shareholders control no more than a third of the capital. SoftBank will be able to begin selling its Arm shares after March 12, when six months have passed since the IPO.