I'm 26 and I don't know anything about finance or stocks.
I've never invested before and I'm planning on purchasing ARM stock the day they IPO.
Is this a bad idea? I was planning on investing a sizeable chunk of my savings.
I've never invested before and I'm planning on purchasing ARM stock the day they IPO.
Is this a bad idea? I was planning on investing a sizeable chunk of my savings.
SoftBank paid $32 billion for Arm in 2016. People at the time were saying that was waaay too much, and that was even without 99.9% of people in the industry having RISC-V on their radar yet.
A fair valuation of Arm, assuming that they're going to grow at a kind of industrial average rate from here on, would be 15 to 20 times annual profits. That's something like $8 to $12 billion. $50 billion is insanity.
Most big ARM clients are dumping ARM for RISC-V.
Including, Qualcomm:
https://arstechnica.com/gadgets/2023/08/qualcomm-one-of-arms...
Google (Converting whole Android system to support RISC-V):
https://arstechnica.com/gadgets/2023/01/google-announces-off...
And Samsung :
https://research.samsung.com/news/Samsung-Electronics-Partic...
When you want to invest look for the underdog, not a company that has it's market share ready to be eaten alive by RISC-V in the coming 5-10 years.
If you don't know much, then don't try to be smart. Invest in broad index bonds rather then individual stocks.
For my money, ARM is sinking in the water. RISC-V will eat its lunch far faster then anybody believes. ARM overall trajectory is down not up.
Consider reading the "RISK FACTORS" section of their IPO filing: https://www.sec.gov/Archives/edgar/data/1973239/000119312523...