Nvidia's Metaverse Appears Bright Even If It Fails To Close The Arm Deal

NVIDIA Corp's NVDA has plenty to focus on as it pushes into the metaverse even if it fails to acquire SoftBank Group Corp SFTBY SFTBF backed British chip technology provider Arm for a hefty price of over $80 billion, Reuters reports.

• On December 2, the U.S. Federal Trade Commission prosecuted to block the deal, mired in global regulatory scrutiny.
• Analysts have long believed that the deal's chances of getting through as bleak.
• "Even if Nvidia does not complete its ARM Holdings acquisition, demand for NVIDIA AI continues to accelerate," Tigress Financial Partners' Ivan Feinseth said, adding that "Nvidia is all about AI and the Omniverse/metaverse."
• Nvidia, the world's biggest maker of AI chips and graphics, has been doubling down on its data center business as more internet companies invest in the metaverse.
• The deal would give Nvidia exposure to Arm, which licenses its chips and blueprints to major chipmakers Apple Inc AAPL, Qualcomm Inc QCOM, and dominate the global semiconductor industry.
• It would also intensify competition with rivals in the data center chip market like Intel Corp INTC and Advanced Micro Devices Inc AMD.
• "Owning Arm would be very nice... But if they can't pull it off, they will save the purchase price... We think the company will be fine either way," Bernstein analyst Stacy Rasgon said.
• "What is lost is the ability of Nvidia to invest in the ARM ecosystem at a much more impactful way than SoftBank had or ARM can," WestPark Capital analyst Ruben Roy said.
• Price Action: NVDA shares traded lower by 5.40% at $304.13 on the last check Friday.