With the IPO of chip stock Arm Holdings (NASDAQ:ARM) IPO about to go live, one of the biggest unanswered questions around it all was just how much of an investment Taiwan Semiconductor was (NASDAQ:TSM) planning to make. The number has finally emerged, and it’s going to be around a nine-figure surprise. This was enough for investors, who put in a little extra juice and boosted Taiwan Semi’s share price somewhat in Wednesday afternoon’s trading.
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The reports that emerged noted that Taiwan Semi would put up to $100 million behind Arm Holdings’ IPO. Arm, which is owned by SoftBank (OTHEROTC:SFTBY), hopes to see as much as $4.87 billion out of the IPO once all the sales are complete. Taiwan Semi already believes that Arm is a major part of its “ecosystem,” as well as that of its customers, so investing some cash into it makes sense.
Interest in Arm’s IPO is through the roof, as the IPO was oversubscribed by more than ten-fold. Moreover, several other major chipmakers, not to mention chip users, have piled in as well. Both Apple (NASDAQ:AAPL) and Google (NASDAQ:GOOG) are in, as are Nvidia (NASDAQ:NVDA), Intel (NASDAQ:INTC), and several others.
Analysts, meanwhile, are mostly in on Taiwan Semi, with five Buy ratings and two Holds, making Taiwan Semiconductor stock a Moderate Buy. Further, with an average price target of $125, Taiwan Semiconductor stock comes with 36.2% upside potential.
