Arm IPO – how to trade ARM shares
Learn about Arm and its IPO, with its potential price drivers, and how to trade technology stocks via CFDs.
When is the Arm IPO?
Arm Holdings began trading publicly on 14 September 2023, following its IPO pricing announcement on 13 September. Its IPO was priced at $51 per share, giving the company an estimated valuation of $52-54.5 billion.
The UK-based chip designer chose to list in the US, with parent company SoftBank selling a 9.4% stake to raise approximately $4.87 billion. It was the largest tech IPO of the year, reflecting interest in semiconductor and AI-related stocks.
Arm is listed under the ticker symbol ‘ARM’ on the Nasdaq Stock Market, with the following trading hours, from Monday to Friday:
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Daylight Saving Time (March to November): 2:30pm to 9:00pm UTC
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Standard Time (November to March): 1:30pm to 8:00pm UTC
Pre-market and after-hours trading are also available for NASDAQ-listed shares. Monitor its live price with our Arm Holdings stock price chart.
What is Arm?
Arm is a British semiconductor and software design company based in Cambridge, founded in 1990 as a joint venture between Acorn Computers, Apple and VLSI Technology. It develops energy-efficient processor architectures used in smartphones, tablets, laptops, servers and IoT devices. Rather than manufacturing chips, Arm licenses its designs to firms such as Samsung, who integrate them into their own hardware.
Arm’s technology underpins around 99% of the world’s smartphones and plays a growing role in cloud computing, AI and automotive systems. Its chip designs are known for low power consumption, making them a standard in mobile and embedded computing. Arm has built a global ecosystem of over 1,000 partners who have embedded more than 250 billion Arm-based chips into products.
Arm Holdings was acquired by Japan’s SoftBank in 2016 for $32 billion and is led by CEO Rene Haas, who took over in 2022. Nvidia attempted to acquire Arm for $40 billion in 2020, but the deal was abandoned due to regulatory hurdles.
What drives the Arm live stock price?
Arm’s live stock price can be influenced by factors such as demand for semiconductor IP, licensing volumes, developments in AI and edge computing, competitive positioning, and broader macroeconomic sentiment.
Licensing and royalty revenue
Arm earns the majority of its revenue through licensing its chip architectures and collecting royalties on each device sold using its designs. As a result, fluctuations in licensing volumes and end-market demand – particularly in smartphones, data centres and automotive – could influence its valuation.
For instance, Arm reported year-on-year royalty growth in 2024 driven by demand for its v9 architecture in AI-enabled mobile devices. However, any slowdown in smartphone shipments or delays in automotive chip rollouts could impact licensing activity and weigh on ARM’s price.
AI and edge computing
Arm’s position in powering low-power AI workloads and edge computing devices may support long-term growth prospects. Adoption of its designs in AI accelerators, wearables, and smart infrastructure could be a positive driver for sentiment.
Conversely, if rivals or RISC-V-based alternatives gain greater traction in AI or embedded systems, Arm’s perceived technological edge could come under pressure. Market reaction to new partnerships or product launches in these areas may influence the share price in either direction.
Customer concentration risk
Arm's customer base includes major chipmakers like Nvidia. Given the scale of these relationships, any changes in licensing terms, contract renewals, or strategic shifts by key partners could affect future revenues. In 2023, Arm disclosed that over 50% of its revenue came from its top five customers.
If one of these companies reduces dependence on Arm’s IP – for example, by investing in in-house chip design or alternative architectures – Arm’s stock price may face downward pressure. On the other hand, deeper integration or expanded licensing agreements may drive positive momentum.
Legal disputes and IP enforcement
For instance, recent litigation with Qualcomm over licensing agreements has escalated, with Arm cancelling Qualcomm’s architectural license in late 2024, citing unauthorised use of its IP. Such disputes underscore Arm’s commitment to protecting its intellectual property in key markets Future legal developments or uncertainties over IP rights could influence sentiment.
Semiconductor cycle and macro trends
Like other chip-related stocks, Arm’s share price may respond to broader semiconductor cycles, inventory corrections, and capex trends. A recovery in global chip demand – particularly across mobile, automotive and data centre segments – could support share performance.
Conversely, headwinds such as excess inventory, slowing consumer electronics demand, or rising interest rates may weigh on valuations across the sector. Arm, despite its asset-light model, remains exposed to the same supply chain and end-market risks as other players in the ecosystem.
Learn more about contracts for difference in our CFDs trading guide.
How to trade Arm stocks
Here’s how to trade Arm shares on your chosen trading platform. Arm shares trade on the NASDAQ Stock Market during regular US stock market trading hours.
- 1. Choose a trading platformPick a broker that offers Arm shares. Many brokers provide access to Arm shares via CFDs, allowing traders to speculate on price movements without owning the underlying stock.
- 2. Set up a trading accountCreate an account with your chosen platform. You’ll need to provide personal details and complete identity verification checks.
- 3. Deposit fundsAdd money to your account using a preferred payment method. Only deposit what you’re prepared to trade with.
- 4. Monitor Arm's share priceMonitor Arm’s live price on our Arm Holdings stock price chart. Watch indicators such as earnings releases, sector news, geopolitical events and regulatory changes.
- 5. Place your tradeWhen ready, open a CFD position. Choose to go long or short depending on your view of the market. Consider using stop-loss and take-profit orders to manage risk.
Learn more about contracts for difference in our CFDs trading guide.
Which technology stocks can I trade?
Alongside Arm Holdings, traders can also gain exposure to the broader technology sector by trading other leading stocks across semiconductors, computing, AI and cloud infrastructure.
Qualcomm (QCOM)
Qualcomm is a key Arm licensee and uses its architecture in Snapdragon chips for smartphones, tablets and automotive systems. Qualcomm generates revenue from both chipset sales and licensing agreements, and its share price is influenced by factors such as global handset demand, 5G rollout, and growth in connected vehicles and XR platforms.
Advanced Micro Devices (AMD)
AMD produces x86 CPUs and GPUs for gaming, PCs and servers. It competes with Arm-based designs in data centres and embedded applications. AMD acquired Xilinx in 2022, expanding its portfolio into adaptive computing, including AI and industrial use cases. Its share price is influenced by factors such as AI product launches, competitive benchmarks, and revenue from data centre segments.
Learn more in our AMD trading guide.
Raspberry Pi Holdings(RPI)
Raspberry Pi, which went public in London in 2024, designs low-cost single-board computers for education, industry and hobbyist markets. Its boards use Arm-based processors supplied by Broadcom and run open-source software. Raspberry Pi has also expanded into embedded and industrial applications.
Learn more in our Raspberry Pi IPO guide.
Apple (AAPL)
Apple uses custom Arm-based silicon across its product range, including M-series chips in Macs and A-series chips in iPhones and iPads. Its transition to in-house chip design began in 2020 and was completed by 2022, aiming to reduce its reliance on third-party suppliers. Quarterly earnings reports, supply chain developments, services revenue growth, geopolitical concerns, and product announcements, can influence Apple’s share price.
Learn more in our Apple trading guide.
Nvidia (NVDA)
Nvidia designs GPUs and AI accelerators used in data centres, autonomous vehicles and high-performance computing. While its primary products are not based on Arm architecture, Nvidia’s Grace CPU – launched in 2024 – uses Arm cores to target AI and hyperscale workloads. Company earnings, data centre revenue, and developments in its CUDA ecosystem, can influence Nvidia’s share price.
Learn more in our Nvidia trading guide.
Or find out how to trade on tech stocks and more in our shares trading guide.
