Arm Stock: How to Buy ARM Shares
The Arm stock was rumoured to be the biggest IPO ever in 2023 and on the Arm IPO date of September 14, 2023, Arm managed to secure an impressive valuation of $54.5 billion - One could consider that, mission accomplished.
Given the incredible amount of news coverage, hype and anticipation the Arm IPO has stirred over the past few months, it’s almost impossible those involved in the markets have not taken some mental note on how to invest in the Arm IPO.
While Arm, a long-established chip, or semiconductor, company, was publicly traded on the LSE (London Stock Exchange) and NASDAQ for 20 years, they were then bought by SoftBank (Japan) in 2016, where SoftBank then became the controlling shareholder.
In this article, we go into more detail on this historical IPO, more about Arm Holdings, review how to invest in the Arm stock and more.
Interested in learning more? Let’s begin.
Table of Contents
Arm Stock: Company Stats of Arm Holdings
To start off in our coverage of the Arm stock we will review some of the main company stats, below:
- The company was founded in 1990, with headquarters in Cambridge, United Kingdom.
- Arm’s 2022 revenue was $3.7 billion.
- Arm stock's valuation on 14/09/2023 reached $54.5 billion.
- There are approximately 6-7,000 employees of Arm currently.
- Listed on NASDAQ.
With a long and eventful history, the company seems to show potential for investors, generally speaking, especially considering the market action seen this and last year by the volatile semiconductor industry.
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Arm Stock: What Kind of Company is Arm?
What could be a common misconception is that Arm produces and manufactures chips or semiconductors, but actually, this is incorrect - Arm’s line of business is the design and development of microchips. Arm is also a provider of processor IPs (Intellectual Properties).
This can be seen as a unique position, given that Arm has been designing and developing microchips since 1990 and since then, has amassed a considerable client base; the Arm-based microchips have been used in almost every video game console, along with most televisions, smartphones and tablets.
To further the concept of Arm’s unique position, let’s touch base briefly on their business model: Arm strictly designs and develops microchips and then licenses that design to the CPU makers, for example - Samsung and Apple.
Remaining in the key niche position of design only puts Arm in an intelligent position, from the perspective of the business model.
To heighten the expectations further, leading tech companies such as Apple (AAPL), Google (GOOG), Nvidia (NVDA), AMD (AMD), TSMC (TSM), Samsung (SMSN) and Intel (INTC) are all mentioned to have shown interest in investing into Arm Holdings - Something which is yet to come to fruition, as of November 2023.
Given ongoing issues with global shortages of microchips, this could potentially put Arm in a strategic position, if they manage to implement a design solution which could improve the manufacturing process. This, at the moment, is purely hypothetical.
On the other hand, the future at this point is uncertain, as there are many players in the semiconductor ecosystem which could pose competition for Arm.
Below you can see the Daily fluctuations of the Arm stock in USD via the TradingView widget:
*Past performance is not reflective of future results.
Arm Stock: The Arm IPO Results
As it often goes with IPOs (Initial Public Offerings), much of the projections are dynamic leading up to the release - the Arm IPO was no different.
Currently, the company is valued via the IPO at $54.5 billion.
In terms of the share price, once the Arm stock was released, on September 14, 2023, it traded at around $63 per share - It has seen slight volatility since then (November 2023), where it is currently trading at around $52 per share.
SoftBank, the Japanese firm that launched the Arm IPO, still owns the majority of Arm stock - 90.6%, to be exact.
In regards to the U.S. IPO market, the Arm IPO re-ignited what has now become a rather dull IPO market in 2023, given the ongoing economic uncertainty, rising interest rates and 2022-2023’s relative bear market.
As can be perceived, there is obvious excitement from all or most groups relative to both finance and the tech industry; Arm is seen to be an indispensable resource for any sector relative to technology, and they seem to be performing up to expectations - So far.
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How to Buy Arm Shares with Admirals
The Arm IPO in 2023 proved to be a success for the Arm stock; with that said, the journey has just begun for Arm Holdings.
At Admirals, you are able to invest in the Arm stock directly. ARM is available to invest in directly from the popular Invest.MT5 platform.
Invest.MT5 is a trading platform powered by MetaTrader 5, a globally recognized platform.
MetaTrader 5 is a tool to help both traders and investors utilize various trading robots, indicators, signals and more, combined with additional features to assist with both technical and fundamental analysis.
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Arm Stock: Conclusion
In the past few years, from 2021 to 2022, the financial world has seen its fair amount of anticipated IPOs - and while that has slowed down so far in 2023, the release of Arm proved to be the stimulant the U.S.IPO market needed.
Will the Arm stock return to skyrocket during the end of 2023 and into 2024? Or, will the price decline after such a successful launch?
If you’d like to start investing in the Arm stock, you can register for a live account today with Admirals.
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Can you buy ARM shares?
Yes, it's possible to buy ARM shares on the open market - NASDAQ, to be exact. In order to buy ARM shares, you need to register with a regulated online broker and fund a brokerage account.
What is the future price of ARM stock?
It is technically impossible to predict the future price of any stock, however, it is projected that the ARM stock may recover by the end of 2023 after its IPO release. CNN Money suggests a 12-month price prediction with a median target of $63.50, with a high estimate of $85.00 and a low estimate of $46.00.
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