Arm stock is poised to continue its upward trajectory for a second consecutive day following the chip designer's highly anticipated initial public offering (IPO) in 2023. Traders are showing great interest in the shares, evident from the significantly higher premarket volumes compared to other popular stocks.
On Thursday, shares of Arm (ticker: ARM) surged by an impressive 25% as the chip designer made its debut in New York. This positive momentum carried over to the premarket on Friday, with the stock climbing an additional 9%. Meanwhile, the broader market saw S&P 500 futures rise by 0.1%, while contracts tracking the tech-heavy Nasdaq dipped by 0.1%.
The IPO of Arm has attracted considerable attention from investors, evident from the premarket trading volume of over 550,000 shares around 4:30 a.m. Eastern time, according to Dow Jones Market Data. To provide context, the next two most actively traded stocks in the premarket, Tesla (TSLA) and Apple (AAPL), recorded volumes of approximately 50,000 and 30,000 shares, respectively.
Renowned for its processor designs used in nearly every current smartphone, Arm designs chips for a range of semiconductor manufacturers. Its successful IPO marks the largest listing in nearly a year and holds the potential to reinvigorate capital markets that have experienced a lull in 2023. This development is undoubtedly a win for start-ups and Wall Street alike.