Arm Holdings (NASDAQ: ARM) was arguably one of the more anxiously awaited offerings for the semiconductor industry in recent years. The company designs central processing unit (CPU) cores, and companies such as , Nvidia, Taiwan Semiconductor (TSMC), and others seek its architecture.

This gives Arm a tremendous advantage, namely that it can license its intellectual property rather than deal with the challenges that chip developers and manufacturers face. Consequently, it earned gross margins of around 95% in the first half of fiscal 2024 (ended Sept. 30).

Unfortunately, its IPO performance may not have impressed investors. After rising 25% on its Sept. 14 IPO day, the stock pulled back. This briefly took Arm below its IPO price of $51 per share before it made a partial recovery.

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Source Fool.com