AI Chip Designer Dubbed “Mini Arm” Poised For Wall Street IPO
Last Updated: 25.9.2023 19:43
The Success of Last Week’s Arm Holdings IPO May Have Reinvigorated the IPO Capital Markets and Could Pave the Way For More Companies to Go Public in 2023-2024
Following in the footsteps of Arm, which became the largest IPO of 2023 after reaching a valuation of $54 billion, another AI chip designer with a similar business model is poised to cash in on the AI boom with an IPO of its own.
The artificial intelligence (AI) industry has thoroughly dominated the investment landscape in 2023, with bellwether AI stocks such as Nvidia (NASDAQ: NVDA) soaring +207.13% year-to-date (YTD). Other tech stocks with ties to the AI sector, such as Amazon (NASDAQ: AMZN) (+63.11% YTD), Advanced Micro Devices (NASDAQ: AMD) (+59.90% YTD), Alphabet (NASDAQ: GOOGL) (+55.08% YTD), and Apple (NASDAQ: AAPL) (+42.30% YTD) have also generate outsized gains for investors.
Compare that to the YTD gains generated by the S&P 500 (+16.46%) and NASDAQ (+31.99%), which have been propped up by a surging AI sector, and the picture becomes ever clearer. A large percentage of the money made in the stock market in 2023 has been made on the back of AI, and following the successful IPO of AI chip designer Arm Holdings (NASDAQ: ARM) last week, we could see the IPO capital markets reinvigorated with companies lining up to cash in by going public.
Also Read: The Biggest AI IPO of 2023 is Finally Here (VIDEO)
Imagination Technologies Eyes IPO
Following in Arm’s footsteps, Imagination Technologies, another British chip designer with exposure to the AI sector, appears to be gearing up for a Wall Street IPO. Imagination Technologies, which operates under a similar business model to Arm, was delisted from the London Stock Exchange (LSE) in 2017 following a $742 million deal with global private equity fund Canyon Bridge that saw Imagination taken private. Per Wikipedia, Canyon Bridge is owned by the Chinese government.
With its headquarters in Hertfordshire, U.K., Imagination’s main business involves the design of PowerVR mobile graphics processors (GPUs), neural network accelerators for AI processing, and networking routers. Primarily focused on designing chips for several applications, such as self-driving cars and cloud computing, the company boasts a client list that includes tech heavyweights, such as Apple (NASDAQ: AAPL).
Based on Imagination’s recent filings, the company generated revenue of USD $149 million in 2022, up +8.76% from USD $137 million in 2021. Considering that one of the main products offered by the company is its AI neural network accelerators, an Imagination Technologies IPO could provide investors with an opportunity to invest in a company with more direct exposure to the AI sector.
Stay tuned for more information on the potential AI IPO of Imagination Technologies.
Learn more about Imagination Technologies: Website | About | Tech
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