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NVIDIA (NVDA) Interested to Acquire SoftBank's Arm Unit
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NVIDIA Corporation (NVDA - Free Report) has reportedly expressed interest in acquiring SoftBank Group’s chip designing business unit Arm Ltd. Citing anonymous sources, Bloomberg on Jul 22 reported that the graphic chip maker has approached the Japanese investment group to make a deal for Arm.
The Japanese investment conglomerate SoftBank acquired the U.K.-based Arm in 2016 for about $32 billion. If NVIDIA is able to strike a deal, it would be the biggest ever acquisition in the semiconductor industry.
Per Bloomberg, “Arm sells semiconductor designs and also licenses the fundamentals of how chips communicate with software, known as an instruction set.” The company is well known for its ARM Processors or CPUs. Additionally, it offers development tools that deliver intelligence in applications, including servers, sensors, PCs, smartphones, enterprise infrastructure, and IoT.
Therefore, we believe the Arm acquisition would be a perfect fit for NVIDIA. The transaction will help the graphic chip maker enhance its capabilities in chip designing and foray into new business segments.
Bloomberg, however, in its report noted that NVIDIA might not strike a deal due to anti-competition regulatory scrutiny. The NVIDIA-Arm merger would pose a bigger threat to several big U.S. tech giants, including Intel (INTC - Free Report) , Advanced Micro Devices (AMD - Free Report) , and QUALCOMM (QCOM - Free Report) , all of which license Arm’s technology.
Bloomberg further stated that the Japanese investment group had approached Apple (AAPL - Free Report) for the sale but the iPhone maker hasn’t shown any interest in pursuing a bid. Anti-competitive regulatory concerns and Arm’s licensing business’ poor fit to Apple’s hardware and software business model have been cited as the main reason behind Apple declining the offer.
Therefore, it looks dicey that NVIDIA would finally be able to strike an acquisition deal with SoftBank for Arm.
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
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NVIDIA (NVDA) Interested to Acquire SoftBank's Arm Unit
NVIDIA Corporation (NVDA - Free Report) has reportedly expressed interest in acquiring SoftBank Group’s chip designing business unit Arm Ltd. Citing anonymous sources, Bloomberg on Jul 22 reported that the graphic chip maker has approached the Japanese investment group to make a deal for Arm.
The Japanese investment conglomerate SoftBank acquired the U.K.-based Arm in 2016 for about $32 billion. If NVIDIA is able to strike a deal, it would be the biggest ever acquisition in the semiconductor industry.
Per Bloomberg, “Arm sells semiconductor designs and also licenses the fundamentals of how chips communicate with software, known as an instruction set.” The company is well known for its ARM Processors or CPUs. Additionally, it offers development tools that deliver intelligence in applications, including servers, sensors, PCs, smartphones, enterprise infrastructure, and IoT.
Therefore, we believe the Arm acquisition would be a perfect fit for NVIDIA. The transaction will help the graphic chip maker enhance its capabilities in chip designing and foray into new business segments.
NVIDIA Corporation Price and Consensus
NVIDIA Corporation price-consensus-chart | NVIDIA Corporation Quote
NVIDIA Might Not Strike A Deal
Bloomberg, however, in its report noted that NVIDIA might not strike a deal due to anti-competition regulatory scrutiny. The NVIDIA-Arm merger would pose a bigger threat to several big U.S. tech giants, including Intel (INTC - Free Report) , Advanced Micro Devices (AMD - Free Report) , and QUALCOMM (QCOM - Free Report) , all of which license Arm’s technology.
Bloomberg further stated that the Japanese investment group had approached Apple (AAPL - Free Report) for the sale but the iPhone maker hasn’t shown any interest in pursuing a bid. Anti-competitive regulatory concerns and Arm’s licensing business’ poor fit to Apple’s hardware and software business model have been cited as the main reason behind Apple declining the offer.
Therefore, it looks dicey that NVIDIA would finally be able to strike an acquisition deal with SoftBank for Arm.
NVIDIA currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
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