Nvidia CEO Jensen Huang spoke favorably about Arm during the chip-design company's digital roadshow.This comes after the dropping of Nvidia's plan to purchase Arm, which regulators argued could be detrimental to competition.
Arm, a chip design firm, stated in a Tuesday filing that leading technology companies such as Apple, Google parent Alphabet, Nvidia, and others have shown interest in investing up to $735 million into the company. This could be seen as a testament to the company's significance, as its designs are used for manufacturing processors in data centers, consumer devices, and industrial products. Furthermore, major chip foundry operators such as Intel, Samsung, and TSMC are also looking to invest. Other entities, such as Cadence and Synopsys Design Systems, have made known their interest in Arm's stock sale. This might cause Arm to gain a market capitalization of about $52 billion and a potential influx of almost $5 billion in cash. However, technology-oriented initial public offerings (IPOs) have been uncommon in the last two years, largely because of rising interest rates disenchanting investors from riskier high-growth firms.
Meanwhile, Arm was listed in both London and New York before SoftBank's $32 billion buyout in 2016, later on producing a profit of $105 million from its $675 million second-quarter revenue. Then in 2020, Nvidia announced plans to acquire Arm from SoftBank; however, the U.S. and U.K. regulators pushed the transaction back until it was dropped in 2022, ultimately leading to its Nasdaq IPO. Despite this, Nvidia still created its own Arm-based processor compatible with its graphics processing units.
Jensen Huang, Nvidia's founder and CEO, praised Arm in the company's prerecorded roadshow video and spoke of his admiration for it. In addition, MediaTek's Rick Tsai also joined the virtual roadshow, projecting the growing presence of products supported by both of their companies.
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