After making its Nasdaq debut this week, Arm Holdings increased by another 6% on Friday in American pre-market activity.
The shares of the British chip designer were trading slightly over $67 at 6:10 a.m. ET, indicating a valuation of more than $72 billion. The price of arm shares had previously increased much more, but those gains have already been curbed.
It follows a nearly 25% increase in share price for Arm on Thursday, the first trading day. The company was valued at around $54.5 billion when the shares for its wildly successful IPO were first priced at $51 each.
Even though it confronts growth challenges, Arm continues to trade at a premium to chip behemoth Nvidia as the rally drags on. Regarding the valuation, some analysts have highlighted their worries.
“The pricing is pricey… I believe that many investors are delaying their decisions. awaiting to see how they implement those drivers, said Ben Barringer, an equities research analyst at Quilter Cheviot, on CNBC’s “Squawk Box Europe.”