Weekly Market Update - 28 August 2023

Arm IPO

SoftBank’s Arm Holdings took a step toward what’s set to become the biggest US IPO of the year — a bet that the once-obscure designer of phone chips can flourish in the era of artificial intelligence computing. A successful debut by Arm would provide a windfall for SoftBank founder Masayoshi Son, whose Vision Fund lost a record $30 billion last year. Arm plans to start its roadshow the first week of September and price the IPO the following week and is expected to seek a valuation of $60 billion to $70 billion. Here’s how Arm plans to ride the AI wave to IPO success.

Source: Bloomberg

Hot Commodities

Investors who bought Australian lithium stocks at the start of the year could have doubled their money — or lost more than half of it, reflecting the extreme volatility of companies mining one of the world’s hottest commodities. Previously unknown companies have soared in value after striking large deposits of lithium-bearing spodumene, mainly in Western Australia, while others have sputtered on uncertainty. One Sydney portfolio manager described lithium stocks as being “the gambling end of town,” attracting hot money and retail betting. But returns can be huge, with one particular star stock surging more than 1,100% this year.

Source: Bloomberg

Moon Landing

India has become the first country to land a spacecraft near the moon’s south pole after Russia’s failed attempt at the weekend. A rover on board Chandrayaan-3 will analyze the chemical makeup of the moon’s surface and search for water. India is the second country, along with China, to have an operating moon rover and just the fourth nation to reach the moon. The US plans to send the first humans to explore the area near the south pole in 2025, in a mission called Artemis III, while China is planning to build a research station near the region and place astronauts on the moon by 2030. Japan has an uncrewed mission launch on Aug. 26.

Source: Bloomberg