Arm Holdings PLC
Now trading at the $60 mark after initially being priced at $51 per share, Arm's debut comes with substantial optimism surrounding the company's future, especially given its pivotal role in the AI space.
The spotlight turned to Arm CEO Rene Haas in a Thursday CNBC interview, where he spoke about the company's trajectory and the inherent strength of its core products.
"Core product is the CPU and what is the superpower of the CPU? It's the broad software ecosystem around it," Haas said, adding that Arm's software ecosystem supports major operating systems such as iOS
The Arm CEO touched on the emergent RISC-V architecture, acknowledging its potential but highlighting the challenge it faces in establishing a software ecosystem comparable to Arm.
"Right now, what we see is that they just don't have much traction in the area around software ecosystems," he said.
Haas did not dismiss the competition, saying the company is remaining vigilant, watching the evolving landscape.
Yet, for RISC-V, Haas saw the software ecosystem hurdle as an imposing challenge, mainly due to the extensive development time and fine-tuning required.
To drive home his point on the dedication and longevity needed in the software domain, Haas said, "Windows running on Arm PCs. I worked on them personally in my previous life back in 2009. Here it is 2023, 14 years later and we're just now starting to see the growth of Arm on Windows PCs."
The complexity of software development, optimization and tailoring magnifies when it branches out to phones, cloud services, and the automotive industry, Haas noted.
It's a realm that Arm extensively invests in, with results showcased over time. The company's strategic focus is on its software ecosystem, viewing it not just as a strength, but as a competitive advantage.
ARM Price action: Shares of Arm Holdings are trading 15.88% higher to $59.12 at the time of publication Thursday, according to Benzinga Pro.
