Will the Arm IPO be a success?
09/14/2023 •
Mixed but leaning towards skepticism. — The majority of comments reflected concerns regarding recent market trends, uncertainties surrounding AI, Arm's relationship with China, and potential increases in licensing fees. While there was optimism regarding Arm's potential in the AI-driven tech sector, the doubts and concerns seem to outweigh the positive sentiments.
Stats
| 43% | 29 | Mastodon |
| 22% | 15 | Hacker News |
| 18% | 12 | Bluesky |
| 16% | 11 |
| 38% | Neutral |
| 36% | Negative |
| 26% | Positive |
| 45% | 😱 Fear |
| 37% | 😃 Joy |
| 7% | 😢 Sadness |
| 6% | 😡 Anger |
| 4% | 😯 Surprise |
| 0% | 🥰 Love |
😱
😃
😢
😡
Story
Diverse opinions exist regarding the success of the Arm IPO, with some individuals being optimistic while others are skeptical about its prospects.
Optimistic individuals believe that the Arm IPO:
- Might revive the market for new listings.
- Will benefit from Apple's commitment to the ARM platform.
- Sets the stage for a revolutionary AI boom.
- Offers promising opportunities for investors.
Skeptics argue that:
- The IPO is a means to offset losses incurred by SoftBank through WeWork.
- The IPO might disrupt market balance by squeezing more profit.
- Concerns about recent market trends and uncertainties surrounding AI may impede the IPO's success.
RISC-V, an open processor with no fees, poses as a potential competitor to ARM. There's concern that if ARM increases its licensing fees, it might lose market share to RISC-V.
Recent market trends in the AI sector and uncertainties surrounding AI have cast a shadow on the Arm IPO's success.
Arm's relationship with China is significant, constituting approximately 24% of its revenue. This relationship might complicate the IPO due to leadership issues and risks of being locked out of the Chinese market.
Concerns exist about Arm potentially increasing licensing fees. If ARM becomes too greedy, companies might seek alternatives, such as RISC-V, to reduce costs.
SoftBank requires the Arm IPO to be successful in order to offset its WeWork losses. There's speculation that if an IPO occurs, SoftBank might be selling to retail investors without confidence in the IPO's success.
Some Wall Street veterans and commenters express concerns about overvaluation and the viability of certain AI projects, leading to both heightened interest and skepticism.
Arm's AI prospects are highlighted by some as a crucial point for investor confidence, despite the shadow cast by recent market trends and uncertainties.
A commenter shares a negative experience working for ARM under SoftBank, leading to doubts about the Arm IPO.
Some comments suggest the Arm IPO is more crucial for SoftBank's financial recovery than for ARM itself due to losses from its vision fund.