In this video, I will be talking about Nvidia (NVDA 3.71%) 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.