High-flying stock NVIDIA Corporation NVDA, which has seen its shares nearly double year-to-date, is reportedly eyeing a takeover of U.K.-based chipset designer Arm Holdings, a wholly owned subsidiary of Japanese investment firm SoftBank Group Corp – ADR SFTBY.
Massive Chip Deal In The Works? Nvidia, the leader in graphic processors, has made an approach in recent weeks to buy Arm, Bloomberg reported Tuesday, citing people with knowledge of the matter.
"We don't comment on rumors or speculation," a Nvidia spokesperson told Benzinga Tuesday when asked for comment on a potential bid for Arm.
What's Next? If the deal goes through, it could have the distinction of being the largest semiconductor deal ever.
Sources also hinted at the possibility of other potential bidders or SoftBank opting to pursue a public listing of Arm, the Bloomberg report said.
If an IPO is undertaken, Arm could boast a valuation of $44 billion, which could soar to $68 billion by 2025, Bloomberg reported, citing New Street Research LLP.
Softbank bought Arm in 2016 for $32 billion.
Arm is a dominant player in processors that power mobile phones, tablet computers and chips used in smartTVs.
At last check, Nvidia shares were rising 0.17% to $418.27.
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Photo courtesy of Nvidia.
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