Arm’s $55 Billion Valuation Falls Short of Lofty Expectations

Arm Holdings Ltd.’s initial public offering is already falling short of lofty expectations, despite riding the AI wave and listing amid the tech giants in New York.

The Cambridge-based company, which snubbed the London Stock Exchange earlier this year, is aiming for a market value of close to $55 billion, based on calculations from filings released on Tuesday. That’s well below initial reports of a target of up to $70 billion.

“It’s a lot more challenging for Arm to capitalize on the current trend for AI than a company like Nvidia,” said Albie Amankona, analyst at Third ...