The enthusiasm with which some investors described the prospects for Arm shares given the ongoing boom in artificial intelligence systems gradually gave way to healthy pragmatism, and as investors realized that a bright future was still a long way off, they began to take interest to lose the company’s shares. They began today’s trading at less than $51 per share, which turned out to be worse than the placement terms at the time of the IPO.
As the agency was able to determine BloombergToday’s trading in Arm shares began with a 3.7% decline from yesterday’s closing price, falling slightly below $51 per share. After earning around $5.23 billion during the IPO, excluding the commissions of the banks involved in the transaction, the Arm company recorded the first day of trading on the Nasdaq stock exchange in its recent history with an increase in the Share price fell by 25%, but from the second day prices began to decline and today they managed to reach the $50.19 mark.
Skeptics among analysts argue that the company’s business is currently too tied to the smartphone and consumer electronics segments, which are unlikely to see further growth, and that Arm’s competition in the automotive components and automation equipment market is the RISC-V architecture is. In the server segment, the main demand is driven by GPU-based computing accelerators, and management’s hopes for widespread implementation of instruction sets to accelerate AI in central processors are somewhat naive and premature. The negative momentum in the share prices of many companies this week was also encouraged by the US Federal Reserve’s statement about its willingness to raise the refinancing rate again this year.