The Rise of Arm Holdings: A Look at Its Inclusion in the Nasdaq-100 Index

Key Takeaways

• Arm Holdings is being added to the Nasdaq-100 Index before the start of trading on June 24.
• The British chip and software designer is replacing Sirius XM, and will also be included in several other Nasdaq indexes.
• Arm started trading on the Nasdaq last September after the biggest U.S. initial public offering (IPO) in two years.

Arm Holdings (ARM) could get a boost after the Nasdaq announced that the British semiconductor and software design company would be added to the Nasdaq-100 Index. The exchange said the move would come ahead of trading on Monday, June 24. Arm will replace satellite programming provider Sirius XM Holdings (SIRI).

Nasdaq noted that along with the Nasdaq-100, Arm would also be included in the Nasdaq-100 Equal Weighted Index, the Nasdaq-100 Tech Sector Index, the Nasdaq-100 Technology Sector Market-Cap Weighted Index, and the Nasdaq-100 Technology Sector Adjusted Market-Cap Weighted Index.

Arm Debuted on Nasdaq Last September After Massive IPO

The decision came nine months after Arm first began trading following the biggest initial public offering (IPO) in the U.S. since 2021. After initially rising as much as 6% Friday on the news, American depositary receipts (ADRs) of Arm Holdings reversed course and were 1.4% lower at $155.81 as of 1 p.m. ET. Still, they have soared about 110% so far this year.

Arm Holdings is a British semiconductor and software design company that has been making waves in the tech industry. With its inclusion in the Nasdaq-100 Index, Arm is set to gain even more visibility and potentially attract more investors.

The Importance of Being Included in the Nasdaq-100 Index

The Nasdaq-100 Index is one of the most widely followed indexes in the world, comprising the largest non-financial companies listed on the Nasdaq stock exchange. Being included in this index can have significant implications for a company’s stock price and overall market perception.

For Arm Holdings, being added to the Nasdaq-100 Index is a validation of its growth and potential in the semiconductor and software design space. It signals to investors that Arm is a company to watch and could be a strong performer in the future.

The Impact on Arm’s Stock Price

Following the announcement of Arm’s inclusion in the Nasdaq-100 Index, the company’s stock price initially rose but then experienced a slight dip. This is not uncommon in the stock market, as investors may react to news in different ways.

However, the long-term impact of being included in such a prestigious index could be positive for Arm Holdings. It could attract more institutional investors and drive up demand for the stock, leading to potential price appreciation in the future.

Looking Ahead

As Arm Holdings continues to expand its presence in the semiconductor and software design market, its inclusion in the Nasdaq-100 Index could be a significant milestone for the company. It puts Arm on the radar of more investors and could help propel its growth trajectory even further.

Investors and analysts will be closely watching how Arm’s stock performs following its addition to the index. With its strong track record and innovative products, Arm Holdings is well-positioned to capitalize on this new opportunity and continue its upward trajectory in the tech industry.

In conclusion, Arm Holdings’ inclusion in the Nasdaq-100 Index is a testament to the company’s success and potential for future growth. As it continues to innovate and expand its product offerings, Arm is poised to make a lasting impact on the semiconductor and software design market.