Arm shares soar on US market debut, Games Workshop enjoys big share price jump

“A solid showing from Wall Street last night put investors in a good mood and that positivity extended across Europe and most of Asia on Friday,” says Russ Mould, investment director at AJ Bell.

“Helping to lift spirits was a strong debut from Arm on the US market and the ECB signalling the end of its policy tightening. That’s exactly what investors want to hear, namely the end of the rate hiking cycle and excitement around growth stocks once again.

“A 0.6% rise in the FTSE 100 to 7,719 put the UK index at its highest level since May. Consumer cyclicals, healthcare, industrials and basic materials led the way.

“Among the mid-caps, Games Workshop jumped more than 8% on a bullish trading update and another dividend payment. The fantasy figures specialist is typically short on detail, merely telling investors that trading is going well without divulging further information. This is true to form for the company and anyone owning the shares has to trust the business is just getting on with it.”

ARM

“Move aside Nvidia, there’s a new player in town and its name is Arm. The UK chip designer has made its presence known thanks to a near-25% jump on its first day trading on the US stock market.

“Nvidia has been the go-to stock for investors looking to play the artificial intelligence theme this year, and many people have made decent money owning its shares. Attention is now shifting to Arm as a way to play AI, which means its first-day pop on the stock market might just be the start of things to come.

“Arm is already a key contributor to the smartphone and gaming sectors which use chips based on its designs. It now has a new tailwind for its services thanks to companies looking to invest in AI.

“When a stock goes up 25% in a day, there will naturally be FOMO among investors – fear of missing out. That might explain why its shares look like they will jump again today, with the stock up nearly 7% in pre-market trading.

“If Nvidia is capable of delivering mega returns, plenty of people will expect the same from Arm. However, investing is never that simple and there are plenty of risks to owning shares in Arm, including the fact it makes a quarter of revenues from China, which exposes it to geopolitical tensions between that country and the West.”

These articles are for information purposes only and are not a personal recommendation or advice.