Nvidia Shares Advance After Report of Talks With Arm on US IPO

Key Takeaways

  • Nvidia is reportedly in talks with Britain’s Arm about a U.S. IPO.
  • The chipmaker tried to buy Arm outright, but was thwarted by regulators.
  • Nvidia shares traded near their all-time high set last month following the news.

Nvidia (NVDA) shares rose more than 2% in early trading Wednesday after a report said the chip manufacturer is renewing talks with U.K.-based chip designer Arm, looking ahead to a potential initial public offering (IPO).

Nvidia shares hovered near their all-time high after the Financial Times reported Nvidia may be an anchor investor in the British firm’s plan for a U.S. IPO. Nvidia would be one of several partners which will also include rival Intel (INTC). The British company hopes these partners will take a long-term stake at the IPO stage.

Nvidia tried to purchase Arm outright in 2020 from its owner, Japan’s SoftBank Group, for $66 billion but abandoned the effort last year after regulators challenged the deal. 

The report noted potential investors are still negotiating with Arm over its valuation. Nvidia apparently is targeting it at $35 billion to $40 billion, while Arm is looking at $80 billion.

Arm could be especially interested in Nvidia because of the firm’s reach into artificial intelligence (AI), which is central to Arm’s growth plans.

With Wednesday’s gains, Nvidia shares have nearly tripled in value this year so far.


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