164 place 10

458 Arm Stock Is Pricier Than Nvidia’s. It Shouldn’t Be

The Information
Anita Ramaswamy @ The Information · 08/20/2024 09:00 EDT

Since chip-design firm Arm Holdings went public last September, excitement around generative AI has sent its stock soaring, to a high last month of $188, more than triple its initial public offering price. While the stock has since fallen back a bit, investors are still valuing Arm at a big premium to Nvidia both on a multiple of future revenue and profits. That’s despite the fact that Nvidia dominates the market for specialized chips used in artificial intelligence.

The valuation gulf makes little sense..

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