(AOF) – British chip designer Arm is expected to rise slightly on Wall Street after closing yesterday with an increase of almost 25% at $63.59 for its first trading session. Arm has a capitalization of more than $65 billion. This operation was the largest IPO of the year in the world. In the United States, we have to go back to 2021 and the launch of electric vehicle manufacturer Rivian to find a more significant IPO: $77 billion.
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Growing market and price tensions
According to SIA, global chip sales stood at $151.7 billion in the first quarter of 2022, an increase of 23% year-on-year. Sales increased in all major regional markets and for all product categories. As global uncertainties, including the war in Ukraine and the health crisis, weigh on supply chains, demand for semiconductors continues to significantly exceed supply. Manufacturers Samsung and TSMC have announced that they will raise their prices, in a context where players in the sector have good room for maneuver and benefit from reinforced negotiating power. However, wage increases and component prices could weigh on future performance.