In this video, I will be talking about Nvidia (NVDA +2.14%) and its struggles with regard to the acquisition of ARM. You can find the video below, but here are some highlights.
- Back in 2020, it was announced that Nvidia would acquire ARM for $40 billion. Recently, reports have said that Nvidia is preparing to walk away from the acquisition.
- Nvidia still believes that the acquisition provides an opportunity to accelerate ARM and boost competition and innovation. While this might be true, regulators think otherwise.
- Regulators believe that the acquisition poses anticompetitive concerns.
- If the deal does not go through, Nvidia will have $40 billion to spend on something else (excluding breakup fees).
- UBS believes that Omniverse could unlock over $100 billion in total addressable market for Nvidia.
- According to IDC, worldwide spending on artificial intelligence will jump from $85.3 billion this year to more than $200 billion by 2025, translating into a compound annual growth rate of more than 24.5%.
- Nvidia is expected to report $7.4 billion in revenue in Q4.
For the full insights, do watch the video below, and consider subscribing.
*Stock prices used were the closing prices of Jan. 25, 2022. The video was published on Jan. 26, 2022.
