Could NVIDIA Buy ARM to Expand Beyond GPUs?
Four years ago, Japanese conglomerate SoftBank (OTC: SFTBY) acquired British chip designer ARM Holdings for $32 billion in a bold expansion into the semiconductor market. But SoftBank is now reportedly mulling an IPO or sale of ARM to raise cash after a streak of poor investments -- including WeWork, Uber, and OneWeb -- crushed its profits.
One of those potential suitors is reportedly NVIDIA (NASDAQ: NVDA), according to Bloomberg, and a takeover could strengthen the chipmaker's business and give it new ways to challenge AMD (NASDAQ: AMD), Intel (NASDAQ: INTC), Qualcomm (NASDAQ: QCOM), and other rivals.
Investors should always be skeptical about buyout rumors, but the long-term implications of a marriage between NVIDIA and ARM are too great to ignore. Let's see if NVIDIA could pull off this massive deal, and what it could mean for the semiconductor industry.
Source Fool.com
