<p>Shares of SoftBank's Arm Holdings rose before the bell on Friday, extending gains from a stellar Nasdaq debut that valued the British chip designer at $65 billion, in a relief to the US IPO market facing a drought in listings.</p>.<p>The stock that closed 25 per cent higher than its offer price of $51 on Thursday was now up 33.9 per cent from that level at $68.31.</p>.SoftBank arm offloads 2 per cent stake in Paytm.<p>"The huge enthusiasm around trading suggests there is very much still appetite for high-growth names, and there's growing hope that the IPO market will now become more buoyant next year," said Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown.</p>.<p>Analysts expect more trading volatility for the Arm stock if it draws more interest from AI-focused retail investors and also due to its limited public flat as SoftBank continues to own about 90 per cent stake.</p>.<p>Arm told potential investors in New York when it began marketing the IPO that the cloud computing market could be an area of growth for it.</p>.<p>It currently has just a 10 per cent share in the segment that was expected to grow at an annual rate of 17 per cent through 2025, mainly due to the advances in AI.</p>.<p>Analysts have said Arm can potentially ride on the coattails of Nvidia, which has been the biggest beneficiary of the AI boom, as its chips would need energy-efficient central processing units (CPUs) - a speciality of Arm.</p>.<p>As of Thursday's close, Arm has a price-to-earnings ratio based on the last 12 months of 163, compared to 110 for Nvidia, according to LSEG data.</p>.<p>"The timing of the IPO is a clear signal that owner SoftBank, which still owns 90 per cent of ARM, wanted to capitalize on the AI wave," Lund-Yates said.</p>.<p>Financials disclosed ahead of the IPO showed that Arm's full-year sales had fallen marginally amid a broader slump in the demand for smartphones across the world.</p>
<p>Shares of SoftBank's Arm Holdings rose before the bell on Friday, extending gains from a stellar Nasdaq debut that valued the British chip designer at $65 billion, in a relief to the US IPO market facing a drought in listings.</p>.<p>The stock that closed 25 per cent higher than its offer price of $51 on Thursday was now up 33.9 per cent from that level at $68.31.</p>.SoftBank arm offloads 2 per cent stake in Paytm.<p>"The huge enthusiasm around trading suggests there is very much still appetite for high-growth names, and there's growing hope that the IPO market will now become more buoyant next year," said Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown.</p>.<p>Analysts expect more trading volatility for the Arm stock if it draws more interest from AI-focused retail investors and also due to its limited public flat as SoftBank continues to own about 90 per cent stake.</p>.<p>Arm told potential investors in New York when it began marketing the IPO that the cloud computing market could be an area of growth for it.</p>.<p>It currently has just a 10 per cent share in the segment that was expected to grow at an annual rate of 17 per cent through 2025, mainly due to the advances in AI.</p>.<p>Analysts have said Arm can potentially ride on the coattails of Nvidia, which has been the biggest beneficiary of the AI boom, as its chips would need energy-efficient central processing units (CPUs) - a speciality of Arm.</p>.<p>As of Thursday's close, Arm has a price-to-earnings ratio based on the last 12 months of 163, compared to 110 for Nvidia, according to LSEG data.</p>.<p>"The timing of the IPO is a clear signal that owner SoftBank, which still owns 90 per cent of ARM, wanted to capitalize on the AI wave," Lund-Yates said.</p>.<p>Financials disclosed ahead of the IPO showed that Arm's full-year sales had fallen marginally amid a broader slump in the demand for smartphones across the world.</p>