Arm Could Be a Huge IPO. Here's Why I Would Buy This Semiconductor Stock Instead.
A check of IPO filings over the past few years shows a clear indication that companies are much more reluctant to go public. That reluctance is likely tied to a tumultuous market of the past 18 months that put an end to Wall Street's pandemic-related boom.
While the trend is to steer clear of initial public offerings (IPOs) at the moment, not all companies are being trendy. In fact, chip design company Arm Holdings is set to burst onto the IPO scene sometime in the next two weeks. When it does, Arm's launch could be this year's biggest technology IPO.
The rumor is Arm is seeking an estimated $50 billion to $55 billion valuation when it begins trading on the . While the hype is building for this company and what it can accomplish, there is reason to believe this could be a situation in which Arm's greatness doesn't end up translating to outsized investment returns.
Source Fool.com
