Arm Reportedly Targets $60B-$70B September IPO 8/2/23

TechCheck

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4.5 • 66 Ratings

🗓️ 2 August 2023

⏱️ 7 minutes

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Summary

Softbank-backed Arm is reportedly targeting a $60B-$70B September IPO - one of the biggest in tech history. The company licenses out chip designing to tech giants including Apple, Amazon, Microsoft, Nvidia, and Intel. Softbank founder Masa Son couldn't have timed it better as the need for computing power and AI chips booms. But there are still risks, including a slowdown in smartphone sales, and faces competition from an open source chip design architecture firm called RISC-V.

Transcript

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0:00.0	Arm the Soft Bank Chip Company reportedly targeting a 60 to 70 billion
0:07.4	dollars September IPO. Our dear Rubosa is digging into that for today's
0:10.9	Tech Jack, hey Dee. So Carl a lot can happen between now digging into that for today's Tech Check. Hey, D.
0:12.7	So, Carl, a lot can happen between now and September,
0:15.9	but all indications so far is that Masa Sun and Soft Bank
0:19.4	have timed this IPO pretty well.
0:21.7	Our audience might remember that in February of this year on Tech Check. to this
0:25.0	the idea, our audience might remember that in February of this year on Tech Chuck, R.M. CEO Renee Haas told us he was committed to listing the company this year.
0:29.0	At the time, that seemed risky because we had a chip glut and the demand outlook for electronics
0:34.7	was bleak.
0:35.4	More over the I peel window showed no signs of reopening.
0:38.3	Tech had not yet rebounded from that ugly 2022 and excitement around generative AI was just getting underway.
0:45.2	That was earlier this year.
0:46.2	Fast forward six months, the conditions are a lot better.
0:49.4	The need for computing power, more chips, that is booming amid the rush to capitalize on generative AI.
0:54.7	The Sox semi-ETF is up 50% and NVIDIA of course now a trillion dollar plus company.
1:01.0	That said, Arm is not NVIDIA video it is making moves into a a i chip design and it works
1:06.5	with the mega caps to help them design their own silicon but it is still very
1:10.0	exposed to the slowdown in smartphone sales and it faces competition from a company
1:16.0	called Risk Five. We don't talk about this a lot but it's out there and it's gaining
1:20.1	sort of momentum among Chinese companies. It is an open source chip design architecture
1:24.9	that provides an alternative to arms close source model.
	...

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