3 AI Chip Stocks to Buy Instead of the Arm IPO

Shares of semiconductor company Arm Holdings are likely to list on the equity markets this week after raising $5 billion via an initial public offering. Arm is a U.K.-based semiconductor chip manufacturing company that is currently owned by SoftBank - and will still be majority owned by Softbank after it goes public again.

Arm’s chips can be found in 90% of smartphones globally, and it has shipped over 250 billion chips to date. Part of the catalyst behind the IPO is to raise cash for investments in artificial intelligence (AI), where Arm hopes to compete with chip design rivals like Nvidia (NVDA).