Opinion-splitting tech investor Cathie Wood snubbed the hyped Arm Holdings PLC (NASDAQ:ARM) IPO claiming some of the semiconductor firm’s competitors are priced ‘much lower’ and have much more exposure to AI.
Wood, head of investment group ARK, has been buying chipmaker stocks such as AMD and Taiwan Semiconductor in recent months, and, has somewhat controversially been a seller of Nvidia despite its soaring performance.
Last month, she called Nvidia ‘overvalued’ which is also a label that she’s now sticking on ARM.
“Arm came out, we think, from a valuation point of view on the high side, and we see within our portfolios much lower-priced names with much more exposure to AI,” Wood said in an interview on CNBC.
She also said, in the interview, that investors are putting too much emphasis on AI for ARM and “maybe not enough focus on the competitive dynamics”.
Wood’s comments come whilst she was in London, where ARK has stuck a deal with Rize ETF which sees the Florida-headquartered investment firm support the launch of its new partner's platform of ETFs.
"We believe that the European ETF market presents a strong growth opportunity as new and younger investors continue to gain access to ETFs via the growth of digital platforms, and as active ETFs increase market share by meeting the demand for innovative investment exposures," Wood said in a statement.
ARM shares traded strongly immediately following last week’s hotly anticipated Nasdaq IPO which gave the company a valuation of about $65 billion in its return to the public markets following a seven-year hiatus.
It initially raced to a premium price after the float priced at $51 per share.
Having traded close to $69 in the giddy wake of the IPO, sentiments have tempered though changing hands at $54.58 the stock remains in positive territory just under a week since the Nasdaq listing.