At a time when investors are keenly interested in both semiconductors and artificial intelligence, Arm is getting ready for a spectacular initial public offering.
This is demonstrated by Nvidia’s 200% increase this year. Arm hopes to raise almost $5 billion through the IPO, valuing the company at more than $50 billion. The company may price its shares at the top of its suggested range or potentially even above it due to the high demand, according to Reuters.
It’s possible that Softbank, the company that owns Arm, had an important role in this by portraying the British chip designer as an AI play. According to Arm’s IPO prospectus, the firm will be “essential” to the shift to AI-enabled computing.
In contrast to Nvidia, the business offers a distinct value proposition, and analysts told CNBC that it is unlikely the company will soon reap the rewards of the AI boom.
Comparison of Nvidia and Arm
Thanks in large part to OpenAI’s ChatGPT, AI has gained significant attention. The ability of the AI to produce replies in response to user inquiries gives rise to the term “generative AI” for this technology.
An AI of this type is built using a model that has been trained on a vast amount of data. These AI models must be trained using a tremendous amount of computational power.
In order to train and run these AI models, data centres use semiconductors made by Nvidia called graphics processing units, or GPUs.