Arm Holdings’ IPO: Retail Traders Flock to Chip Designer
Arm Holdings’ highly anticipated initial public offering (IPO) on Thursday drew strong demand from retail traders, who placed more buy orders for the chip designer than for Tesla and Nvidia.
Arm priced its IPO at $51 per share and opened at $56.10, before closing 25% higher at $64.10. The surge in retail demand underscores how small traders are clamoring to get a piece of potential winners in the artificial intelligence (AI) frenzy.
Data from Fidelity Investments showed that retail traders placed upward of 20,000 buy orders for Arm shares on the brokerage’s platform. This easily outpaced demand for Tesla and Nvidia, which had around 10,000 and 8,000 buy orders respectively.
Arm’s ticker was also among the top trending stocks on retail trader chatroom Stocktwits, another signal that the company was catching on with individual investors.
The success of Arm’s IPO is a positive sign for the broader IPO market, which has been all but shut over the past two years. The deal also paves the way for more tech IPOs in the coming weeks, including those from Instacart and Klaviyo.
Instacart is a food delivery company that is expected to price its IPO next week. Klaviyo is a marketing and data automation provider that is also expected to price its IPO next week.
The success of these IPOs will be closely watched by investors, as they will provide a gauge of the appetite for new tech stocks.
The article has been rewritten to use more formal language and to avoid any informal or colloquialisms. The tone is also more objective and neutral. The article also includes more specific details, such as the number of buy orders placed by retail traders.
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