After plenty of hype and buzz, Arm shares hit the open market with a bang. And for good reason. Samsung, Apple, Qualcomm, and Alphabet all use Arm's technology. In fact, over 90% of smartphones worldwide use semiconductors designed by Arm.
Find out why this semiconductor stock is such a global phenomenon and how you can invest to buy Arm shares.
Both exchange rates and share prices fluctuate in real time, so the costs estimated here should be considered as a guide only. They don't factor in spreads, which can be hard to pin down. Always refer to the platform itself for availability and pricing.
Quantity of shares
| Platform | Finder score | Account fee | Min. initial deposit | Trade cost | Link |
|---|---|---|---|---|---|
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4.39 ★★★★★ |
£0 | $100 | £944.24 |
Go to siteCapital at risk
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3.75 ★★★★★ |
0.12% per year | £0 | £942.03 |
Go to siteCapital at risk
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4.3 ★★★★★ |
£0 | £0 | £944.24 |
Go to siteCapital at risk
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4.2 ★★★★★ |
£0 | £1 | £960.89 |
Go to siteCapital at risk
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4.34 ★★★★★ |
0% - 0.25% | £100 | N/A |
Go to siteCapital at risk
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4.1 ★★★★★ |
£0 | £0 | N/A |
Read reviewCapital at risk
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4.4 ★★★★★ |
£0 | £0 | £944.24 |
Read reviewCapital at risk
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All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Past performance is no guarantee of future results. If you’re not sure which investments are right for you, please seek out a financial adviser. Capital at risk.
Buying shares in just one company is generally considered a riskier bet than investing in a range of investments - AKA a "diversified portfolio". Experts generally recommend holding a mix of investments in specific assets and funds. Funds are ready-made portfolios of multiple companies' shares (potentially including Arm), and the idea is that drops in the value of one constituent company's share price might be offset by rises in others.
Arm is a major part of the NASDAQ, so it's included in many global funds and investment trusts, as well as tracker-style exchange traded funds (ETFs).
April 22, 2024: After a stock price correction, Arm's share price has rallied slightly as news came out that SoftBank plans to spend almost $1 billion to upgrade data centres and develop Japanese-language generative AI.
Only you can make the decision on the time to leap... but here's some supporting information and analysis.
Historical closes compared with the last close of $97.93
| 1 week (2024-04-18) | 12.32% |
|---|---|
| 1 month (2024-03-25) | -23.47% |
| 3 months (2024-01-25) | 37.60% |
| 6 months (2023-10-25) | 95.20% |
| 1 year (2023-04-19) | N/A |
| 3 years (2021-04-19) | N/A |
The gauge below shows real-time ratings that are based on 26 popular indicators such as moving averages, for specific time periods. It's not a recommendation but is simply technical analysis that can form part of your research.
Finder might not agree with the analysis and we take no responsibility. We also give no representations or warranty on the accuracy or completeness of the information provided on this page.
George Sweeney
It's impossible to predict with any degree of certainty. Still, if we look at past IPOs, there's likely to be plenty of immediate volatility as the market attempts to price Arm shares.
Once the dust has settled and the hype dies down, Arm will be treated just like any other stock. Its finances will become much more public, and investors can dig into the company to decide if the shares are worthy of the price tag.
The Arm IPO was a great springboard, but it's now up to the company to perform and showcase that it deserves to be held in such high esteem among the other major semiconductor stocks.
All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Past performance is no guarantee of future results. If you’re not sure which investments are right for you, please seek out a financial adviser. Capital at risk.
Valuing a stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of overall performance. However, analysts commonly use some key metrics to help gauge value. Check out the Arm P/E ratio, PEG ratio and EBITDA
Arm's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 1389x. In other words, Arm shares trade at around 1389x recent earnings.
That's relatively high compared to, say, the trailing 12-month P/E ratio for the United States stock markets on average as of November 09, 2023 (20.44). The high P/E ratio could mean that investors are optimistic about the outlook for the shares or simply that they're over-valued.
However, Arm's P/E ratio is best considered in relation to those of others within the industry or those of similar companies.
Arm's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 2.2893. A PEG ratio over 1 can be interpreted as meaning shares are overvalued at the current rate of growth, or may anticipate an acceleration in growth.
The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Arm's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.
However, it's sensible to consider Arm's PEG ratio in relation to those of similar companies.
Arm's EBITDA (earnings before interest, taxes, depreciation and amortisation) is $244.5 million (£0.0 million).
The EBITDA is a measure of a Arm's overall financial performance and is widely used to measure a its profitability.
To put that into context you can compare it against similar companies.
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Contrary to popular belief, Arm doesn't actually make chips (semiconductors). Arm creates designs for chips and then sells or licences the intellectual property (IP) to big tech firms. So it's not a manufacturer, more of a research company.
However, this is partly what makes Arm so valuable. It doesn't matter whether a phone is Android or iOS, Samsung or Apple, every piece of hardware can potentially use Arm's chip designs.
This is why you'll see crazy stats showing that Arm chips can be found in over 90% of smartphones worldwide. The ability to customise Arm chips for different firms and devices makes them a very unique semiconductor business.
All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Past performance is no guarantee of future results. If you’re not sure which investments are right for you, please seek out a financial adviser. Capital at risk.
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