- NVIDIA Corp's NVDA reported plan of not proceeding with the acquisition of semiconductor licensing company Arm, a move that would be a "net positive" for the chip company, Bank of America said.
- Vivek Arya, who reiterated a Buy on the stock, said that the scenario would benefit Nvidia, given that the deal faces "considerable regulatory pushbacks" worldwide, including in the U.S., U.K., and China.
- Related Content: Nvidia Quietly Looks To Dump Its Arm Ambitions
- In addition, Nvidia does not need to own Arm to use its tech to expand in the data center, and Arm's smartphone sales are "highly growth dilutive" and not worth the $55 billion - $60 billion that the cash and stock value equate to.
- Price Action: NVDA shares traded higher by 5.59% at $235.72 on the last check Wednesday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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