Amidst great anticipation, Arm, the U.K.-based firm that designs computer chips, has filed for its U.S. initial public offering (IPO). Following the ARM IPO, ARM stock will trade on the Nasdaq exchange under the ticker “ARM” starting in September.

Here are seven more things that investors should know about the ARM IPO:

• Arm is currently owned by Japanese investment bank SoftBank (OTCMKT:SFTBY).
• In its last full fiscal year, Arm reported a net income of $524 million, below the $549 million that was on its bottom line for the previous fiscal year.
• Softbank acquired Arm for $32 billion seven years ago.
• Arm designs the architecture of 99% of all smartphone chips.
• The company has been hurt by the reduced demand for consumer electronics in general and smartphones in particular.
• About 10% of ARM stock will be listed on the Nasdaq.
• Softbank hopes that the IPO will give the firm a valuation of between $60 billion and $70 billion. If the company obtains a valuation of $64 billion, it would be changing hands for a very high valuation of 122 times its earnings.

More About Arm and the ARM IPO

Arm obtains its revenue by charging “licensing fees for its technology” and charging royalties on the products which utilize its designs. In addition to smartphones, the company’s chip designs are embedded into laptops, vehicles, and even servers that facilitate cloud computing.

According to The Wall Street Journal, investors’ current bullishness over artificial intelligence could increase the Street’s enthusiasm for Arm’s IPO. The publication noted that, amid the AI boom, the “PHLX Semiconductor index has surged 41%” so far in 2023. And Nvidia’s (NASDAQ:NVDA) server chips, which are used to train AI, utilize Arm’s technology, the publication reported.

On the date of publication, Larry Ramer did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.