Intel To Become Anchor Investor In Softbank Group Corp Arm Ipo

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Intel To Become Anchor Investor In Softbank Group Corp Arm Ipo

Intel To Become Anchor Investor In SoftBank Group Corp Arm IPO

According to media reports, Intel (INTC) is supposedly in talks with the Softbank Group Arm to become an anchor investor in the upcoming IPO.

Arm is thinking about selling its shares on the Nasdaq index somewhere later in 2023. Through the IPO (initial public offering), Arm is planning to raise $8 - $10 billion that would be used to further advance the company.

Arm is a key player in the chips industry as its designs are extensively used in chip manufacturing. This makes it a perfect candidate for most of the semiconductor companies out there, including Qualcomm, Nvidia, and even Intel.

For now, it would be too soon to gauge the impact of an investment made by any of these companies mentioned above. However, an investment from Intel will suggest that the company is seriously invested in the chip-making business.

The chipmaker applied for an IPO with the US regulators in April (a few months ago). This tells us that a lot of work must have already been done to set the stage for a grand IPO. Whenever the IPO is launched, it will easily become one of the largest IPO of this year!

When Intel and Arm were approached for comments, they were not immediately available. However, the chip-making stocks are mostly positive, with gains ranging from 1.84% up to 5.52%. For starters, Intel (INTC) has gained 5.52% for the day, while NVIDIA (NVDA) is up by 1.84%.

And last but not least, Qualcomm (QCOM) is also up by 2.54%, which suggests an overall bullish theme in the semiconductor sector.

Looking ahead, the consumer demand in China, Japan, Europe, and the USA will play a key role in the growth of these chip-making companies. Any dent in consumer demand will directly translate into poor sales & revenue for these chip-making companies which will eventually show up in their stock performance.

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