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Investors hope Arm’s IPO can revitalize capital markets in a weak year.
Courtesy of Nasdaq
Arm shares fell on Friday. It sought a second day of gains but failed to hold on.
The chip designer went public the day before in the largest IPO of the year. Trading volume on Friday was significantly higher than that of other popular stocks.
Shares of Arm (ticker: ARM) rose 25% on Thursday as the chip designer made its debut in New York. On Friday, the shares initially traded 6% higher, but later slipped 4.5% into the red. The broader stock market fell, with the S&P 500 and the tech-heavy Nasdaq each losing more than 1%.
Arm’s IPO has attracted a lot of attention from investors, with premarket trading volumes dwarfing other actively traded names like Tesla (TSLA) and Apple (AAPL).
Arm had a trading volume of more than 31 million at the start of regular trading on Friday, according to Dow Jones Market Data. Tesla had almost 33 million and Apple had 26 million.
“Investor appetite for new issues is strong,” said Neil Wilson, analyst at broker Markets.com. “Cornerstone investors played a big role, but retailers showed interest.”
Arm develops chips for a number of semiconductor manufacturers, with its processor designs used in most smartphones. The company’s IPO is the largest in nearly a year and has the potential to boost capital markets that have been in the doldrums in 2023 – a win for startups and Wall Street alike.
Write to Jack Denton at [email protected]