Arm is trading at a premium to Nvidia after IPO pop even though it's a 'no-growth company'
Publishing timestamp: 2023-09-14 19:15:06
Summary
The article discusses Arm's successful Nasdaq debut, with its stock jumping 25%. However, it questions the high valuation of Arm compared to its revenue and the price-to-earnings ratio. It highlights the difference in growth rates between Arm and Nvidia, with Nvidia's revenue doubling and projected to grow 170% while Arm's revenue shrank. The article also mentions SoftBank's involvement in Arm and the strategic investors who purchased shares. It emphasizes the need for Arm to focus on growth and market share gains in order to justify its valuation. The article concludes by discussing Arm's potential in the AI-based computing market and its strong profit margins compared to other chip companies.
Sentiment: MIXED
Tickers: AMD, INTC, SSU-FF, AAPL, ARM?QSEARCHTERM=ARM, NVDA, GOOGL,
Keywords: advanced micro devices inc, intel corp, stock markets, alphabet inc, nvidia corp, masayoshi son, social media, breaking news: technology, computer hardware, arm holdings plc, apple inc, business, samsung electronics co ltd, technology, business news, ipo,