The stock of British chipmaker Arm Holdings (ARM) rose 25% on its first day of trading to close at $63.59 U.S. per share.
The company set its initial public offering (IPO) price at $51 U.S. a share. The stock first traded at $56.10 U.S. on the Nasdaq exchange and quickly rose more than 20% in intraday trading.
Arm, which trades under the ticker symbol “ARM,” ended the day with a valuation of $65 billion U.S. The company raised nearly $5 billion U.S. in what was the largest IPO of the year so far.
Arm’s price-to-earnings (P/E) ratio sits at 110 based on its most recent fiscal year profit. That compares to rival chip designer Nvidia’s (NVDA) valuation, which is at 108 times earnings.
Arm executives have said that they expect the total market for its microchips and semiconductors to reach $250 billion U.S. by 2025.
Arm’s chips can be found in nearly every smartphone manufactured today. Several technology companies purchased the company’s stock in the IPO, including Apple (AAPL) and Nvidia.
Many other technology companies rely on Arm’s designs to develop and build their own microchips and semiconductors, including for artificial intelligence (A.I.) applications.