Arm, a stock market success powered by generative AI that we didn’t see coming

Published on November 5, 2024 at 8:49 p.m. / Modified on November 5, 2024 at 9:37 p.m.

The operation aroused a lot of interest but also raised many questions. Arm’s IPO on September 14, 2023 ended a long period of drought in the initial public offering (IPO) market in the tech sector. But we were then wondering about the abilities of the British designer of electronic chips to ride the wave of generative artificial intelligence (AI) which has propelled companies like the Californian Nvidia to the top.

The strategy of its owner Softbank, then in difficulty after the bankruptcy of WeWork which cost it $14 billion, also raised some doubts. For the Japanese group, Arm’s IPO should allow it to turn things around, after the failure of a sale to Nvidia, blocked by the competition regulatory authorities. But a little more than a year later, the bet seems to have paid off. Since its IPO, the stock has more than doubled, from around $60 in September 2023 to $141 at the time of writing this article. After a few months of stagnation, Arm’s stock really took off at the start of 2024. Since January, its value has increased by 105%.

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