Chip company Arm stock receives a positive boost in its first trading session on Wall Street

Chip company Arm's stock received a positive boost in its first trading session on Wall Street after setting the share price in the initial public offering at $51.

In Thursday's session - the first trading session for Arm shares - the shares of the SoftBank subsidiary rose by about 25%.

The company added about $13 billion to its market value, bringing it to $65 billion.

In the second session, the stock jumped 6% in opening trading, but those gains declined after that.

At the end of the session, Arm shares declined by about 4.47% to $60.75, while the market value stabilized at a high of $60 billion, after jumping to $72 billion.

The total number of outstanding shares in Arm immediately after the implementation of the initial public offering reached 1.03 billion shares, and SoftBank owns about 90% of them.

Positive future prospects

Arm said in the initial public offering that it expects the target market for products bearing its design to reach levels of $246.6 billion by 2025, up from $202.5 billion last year.

For the fiscal year 2023, Arm's gross profit margin reached levels of 96%, while the operating profit margin recorded levels of 25% last quarter.