Nvidia beats earnings expectations, plans to acquire Arm Limited in $40 billion deal

From Barchart: 2024-08-29 09:15:02

Nvidia reports earnings surpassing expectations, with revenue reaching $6.51 billion in Q3. Gaming segment revenue also exceeded projections, hitting $3.38 billion. The company attributes growth to continued demand for gaming GPUs and data center products. Nvidia stock rises by 2% in after-hours trading following the earnings report.

Nvidia announces plans to acquire Arm Limited for $40 billion, in a deal that will be completed through a combination of cash and stock. The acquisition aims to create a premier computing company with a focus on AI and data-centric computing. The transaction is subject to regulatory approvals and is expected to close in 18 months.

Arm Limited, a UK-based semiconductor company, is a key player in the mobile computing industry, providing technology that powers mobile devices and IoT applications. Nvidia’s acquisition of Arm is expected to strategically position the company in the rapidly growing AI and data center markets, while expanding its reach in the mobile computing space.

The acquisition of Arm by Nvidia marks a significant milestone in the semiconductor industry, as it brings together two major players in the computing and AI space. The deal has potential implications for competition and innovation in the industry, and will be closely monitored by regulators around the world. Investors await further updates on the progress of the acquisition.



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