When investors seem really surprised that not everyone is against Nvidia’s planned acquisition of Arm Holdings, it says something.
Nvidia shares surged 5% on Monday afternoon Following the report Broadcom, MediaTek, and Marvell Technology have announced their support Proposed transaction Purchase an arm based in Cambridge, England from SoftBank Group. The Sunday Times reported positive comments from three Nvidia chipmakers over the weekend.The deal is below National security review Report by UK authorities through July 30. US and Chinese regulators also need to clear the deal in order to proceed.
Industry opposition is seen as: Major obstacle To the proposed deal announced in September last year. With this acquisition, Nvidia, the world’s second-largest chip company by market capitalization, powers most of the world’s mobile devices and brings key technologies that are making significant inroads into markets such as personal computers and data centers. You will be able to manage it. Qualcomm, Google, and Microsoft allegedly use Arm-based chips in their products and are opposed to this deal.
Against this background, positive comments from any peer are considered a “major step forward” in the proposed transaction, according to Citi analyst Atif Malik. However, the support seems to be lukewarm at best. Only MediaTek CEO Rick Tsai reportedly said the chip industry would benefit from this combination. Broadcom CEO Hock Tan said, “Nvidia has given the industry a guarantee,” and said it would increase its investment in Arm and continue to license the technology on a fair basis. Marvel chief Matt Murphy has hoped regulators to address industry concerns, but it’s “not sad” to see the deal blocked, he told the newspaper. But in a statement sent to The Wall Street Journal on Monday, Murphy said he was in favor of the deal.
Support from others may still come. Apple Inc., which uses Arm processors on iPhones, iPads, and now Mac computers, hasn’t publicly commented on the deal yet. However, given the need for approval from the government currently working on the semiconductor business, the deal still faces a long probability. More nationalist bend.. In a memo to customers on Monday, Citi’s Malik called China the biggest hurdle to trading, saying “it is unlikely that China will support a deal that could lose access to weapons.” .. However, he still increased the probability of the merger completing from 10% to 30%.
Nvidia gets a little help from friends
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