The share price of ARM Ltd has increased by another 6% on its second day of trading on the Nasdaq stock exchange.

Shares in the UK chip designer, based in Cambridge, were just over $67 earlier today, implying a valuation of over $72bn.

The initial public offering (IPO) for shares was launched on Thursday, with ARM shares increasing by 25% on its first day of trading.

Initially, shares were valued at $51 each, taking the company’s valuation to around $54.5bn.

The firm is owned by SoftBank, a Japanese investment holding company, which owns 90% of the British firm, floating just 10% of ARM on the stock market.

SoftBank purchased ARM in 2016 for £23.4bn, taking it private in the same year. It sold a 25% stake of the business to Vision Fund 1 for $8bn a year later.

SoftBank reacquired Vision Fund’s stake in ARM in August, as the investment firm prepared an IPO for the chip designer.

Lead equity analyst at Hargreaves Lansdown, Sophie Lund-Yates, commented: “ARM’s trading debut hasn’t disappointed, with the shares trading up a blockbuster 25%. The chip designer, which essentially creates and licenses the blueprints for tech-heavy chips, was seen as a guinea pig to test the choppy market waters.

“The huge enthusiasm around trading suggests there is still very much still appetite for high-growth names, and there’s growing hope that the IPO market will now become more buoyant next year. IPO activity is a strong indicator of overall sentiment – people rarely come to market when things are highly uncertain.

“The timing of the IPO is a clear signal that owner Softbank, which still owns 90% of ARM, wanted to capitalise on the AI wave. In the nearer term, the group will be sensitive to downturns in smartphone and consumer electronics. Last year’s revenue stagnation has been stomached but a protracted period of sluggishness is unlikely to be taken well.”

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