In an event that could mark a turning point for both Silicon Valley start-ups and Wall Street investment banks, Arm Holdings (ARM) this past week completed a highly anticipated initial public offering. The deal was a smash hit, Eric J. Savitz writes in this week’s edition of Barron’s. Arm is now trading for about 25 times its most recent full year of revenue-and at more than 100 times profit. And that could be where things get tricky for the new stock, the author notes. The list of medium- and large-size tech companies trading at more than 25 times sales is short: It includes Nvidia NVDA (NVDA). And no one else. Much of Arm’s pricey valuation is tied to its potential attachment to artificial-intelligence trends, the publication adds.
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