12 Best IPO Stocks to Buy in 2025

Page 5 of 11

7. Arm Holdings (NASDAQ:ARM)

Average Upside Potential as of March 21: 49.07%

Number of Hedge Fund Holders: 43

Arm Holdings (NASDAQ:ARM) architects and licenses crucial CPU products and related technologies for semiconductor companies and OEMs globally. Its portfolio includes microprocessors, system IPs, and software. It powers devices across automotive, computing, consumer, and IoT markets.

In Q3 2024, the company reported a total revenue of $983 million, which was a 19% increase year-over-year. Net income for the same period rose to $252 million. The company projects revenue growth in the mid-20% range for FY2025 due to the increasing demand for chips in AI and data centers. The company’s primary revenue driver is its IP licensing of the ARM architecture, which is essential for an array of devices, including those that power AI applications.

Arm Holdings (NASDAQ:ARM) is expanding its presence in the AI market. It secured a contract with Meta for chip development, which signaled a move towards direct chip production. The company is involved in merger discussions with Ampere Computing LLC. The expansion of AI data centers is creating a demand for the company’s technology. Additionally, Malaysia is investing $250 million into Arm Holdings (NASDAQ:ARM) for AI chip development.

Page 5 of 11