ARM on the stock exchange
Renovated semiconductor company Arm is expected to come up with its initial public offering this year. There are now signs again that the high-end chip designer is preparing for an initial public offering (IPO). One of the main reasons why the company wants to go public is the fact that companies in its industry benefit from the success of artificial intelligence. If you want to learn in which industries AI could replace human work, click on the article HERE.
SoftBank, which owns Arm, is in talks with Intel as a potential strategic investor in one of the biggest initial public offerings of the year. In April, Reuters reported that Arm planned to sell shares on the Nasdaq in a bid to raise $8 billion to $10 billion.
For Intel, investing in Arm may be one of the best ways to take on rivals like Nvidia and AMD in the semiconductor market. Intel is also trying to intensify its fight against TSMC. That is why the company decided to change its strategy a few years ago. It is trying to become the largest foundry, or contract chip manufacturer in the world and thus dethrone the world leader Taiwan Semiconductor Manufacturing. AMD and Nvidia only develop the chips, but contract manufacturers produce them. As part of this plan, the company unveiled its latest technology and sales strategy this year.
Owned by Japanese technology investor SoftBank since 2016, Arm licenses “intellectual property” to companies such as Apple, Amazon and Samsung, which use chip designs in device processors around the world. Nvidia was poised to buy Arm after reaching a deal with SoftBank in 2020, but the takeover was thwarted by regulatory pressure in early 2022. Shares of Nvidia, another key player in the chip market, have gained +170% this year alone on the recent AI explosion.