Japanese conglomerate SoftBank (SFTBY) is looking to secure anchor investors for UK chip designer Arm ahead of its much-anticipated Nasdaq IPO. Initially, SoftBank had eyes for Nvidia (NVDA), Intel (INTC), and a few others, but insiders suggest the list has expanded. Now, heavyweights like Google (GOOGL), Apple (AAPL), and Amazon (AMZN) are under the spotlight. With Amazon being a big-league player in cloud computing and having Arm designs at the heart of its self-made data center chips, an investment from their end would be more than just money; it’d be a massive vote of confidence for Arm.
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Yet, price tags and valuations have become the crux of the conversation. While SoftBank dreams of a $60 billion market valuation for Arm, a person familiar with discussions suggests that Nvidia pitched a more modest figure between $35 to $40 billion. Arm, on the other hand, Arm is eyeing a lofty valuation of nearly $80 billion. Overall, Arm is aiming to raise $8 to $10 billion from its planned IPO.
Turning to Wall Street, both AMZN and NVDA stocks are rated as Strong Buys by analysts with price targets that imply upside potentials of over 23% and 17%, respectively.
