Arm Holdings (NASDAQ: ARM) has long been influential in the semiconductor industry. Numerous top-chip companies depend on the chip designs it licenses.

With the recent launch of its initial public offering (IPO), investors have looked more closely at the company, and the stock has increased significantly since it began trading in September. While it could continue to rise over time, investors should not expect it to turn them into millionaires from a small investment. Here's why.

The factor working against Arm Holdings in terms of its "millionaire-making" potential, at least for small investors, is its size. Despite the stock's short trading history, its market cap is $126 billion. That places it well into the range of large-cap companies, and if the stock's market cap doubled from current levels, it would become a megacap stock.

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Source Fool.com