Arm Holdings Inc.’s highly-anticipated initial public offering (IPO) has captivated the attention of retail traders, reflecting a surging interest in the artificial intelligence (AI) trend. According to data from Fidelity’s trading platform, Arm received over 20,000 purchase orders on Thursday, surpassing even retail favorites like Tesla Inc. and Nvidia Corp. The stock opened at $56.10, significantly higher than the IPO price of $51, concluding the session with a 25% increase.
The strong demand from retail traders highlights their desire to secure a stake in potential winners amidst the AI frenzy. With limited IPO opportunities in the past years, Arm’s IPO provided an attractive opportunity for small traders to invest in a newly public tech company. This success is likely to pave the way for more IPO deals in the weeks to come.
The surge in retail interest also extends to online grocery-delivery firm Instacart Inc. and marketing and data automation provider Klaviyo Inc., both poised to price their IPOs next week. SoFi Technologies Inc., among the banks involved in underwriting Instacart’s IPO, plans to offer shares to individual investors using its platform. The performance of these three companies, along with other upcoming IPOs like Vietnam-based internet startup VNG Ltd. and footwear maker Birkenstock Holding Ltd., will be closely monitored as indicators of market sentiment.
Overall, Arm’s IPO has not only demonstrated its appeal to retail traders but has also revealed a broader enthusiasm for AI-related investments. This growing interest signifies the increasing significance of AI in various industries and the recognition of its potential for future growth.
1. What is an IPO?
An IPO, or Initial Public Offering, refers to the process of a private company becoming a publicly traded company by offering shares of its stock to the public for the first time.
2. What is artificial intelligence (AI)?
Artificial intelligence, or AI, is a branch of computer science that focuses on the creation of intelligent machines that can perform tasks typically requiring human intelligence, such as visual perception, speech recognition, and decision-making.
3. Why are retail traders interested in AI-related investments?
Retail traders are increasingly interested in AI-related investments due to the growing recognition of AI’s potential to drive innovation and transform various industries. They see AI as a key driver of future growth and want to be part of the potential success of companies operating in this field.
4. How can retail traders participate in an IPO?
Retail traders can participate in an IPO by purchasing shares of the company’s stock once it begins trading on a public exchange. This can be done through brokerage accounts or trading platforms that offer access to IPOs.
– Bloomberg L.P.