Home / Business and Economy / Arm IPO Valued at $135 Billion Post-Nvidia Exit
Arm IPO Valued at $135 Billion Post-Nvidia Exit
18 Feb
Summary
- Nvidia sold its stake in Arm following a failed $40 billion acquisition attempt.
- Arm's market capitalization is now approximately $135 billion.
- Nvidia maintains a 20-year license and partnership with Arm.
Nvidia has concluded its investment in Arm, a move that follows its earlier, unsuccessful attempt to purchase the chip technology firm outright for $40 billion. This acquisition was initially agreed upon with Arm's owner, SoftBank, in 2020 but ultimately failed due to regulatory challenges in 2022.
Arm, which collaborates with major tech companies including Meta, Google, Microsoft, and Amazon, now boasts a market valuation of around $135 billion. Nvidia's shares saw a 2% increase in premarket trading following this news.
Despite Nvidia's exit from its stake, the relationship between the two companies endures. Following the 2022 breakdown of the takeover, Nvidia retained its 20-year licensing agreement with Arm. Nvidia's CEO, Jensen Huang, affirmed continued support for Arm as a key licensee.
Arm recently announced its fiscal third-quarter results, revealing a 26% year-on-year increase in sales, reaching $1.24 billion, surpassing analyst forecasts. Analysts noted positive momentum in AI projects and strategic investments for long-term demand, though the stock experienced a slight dip in after-hours trading. Year-to-date, Arm's stock has appreciated by 16%.
