Arm, the U.K. chipmaker acquired by Japan’s Softbank in 2016, is potentially attracting an investment from Nvidia in its upcoming initial public offering (IPO).
Nvidia (ticker: NVDA), the first semiconductor firm to achieve a $1 trillion valuation, and Intel (INTC) might emerge as anchor investors for a New York IPO as early as September, according to the Financial Times. Unidentified individuals familiar with the discussions disclosed this information. Both Nvidia and Arm declined to comment when reached by the Financial Times.
There are ongoing negotiations between prospective investors regarding Arm’s value. Nvidia argues that Arm should be valued at $35 billion to $40 billion, while Arm sees its worth closer to $80 billion, as reported by the Financial Times. Last year, Nvidia offered to acquire Arm for $66 billion but withdrew the bid due to regulatory challenges.
In premarket trading, Nvidia shares were up 0.4%, while Softbank shares closed 2% higher in Japan on Tuesday.
Softbank acquired Arm for $32 billion in 2016, and among Arm’s clients are Nvidia and Apple. The Financial Times reports that artificial intelligence, which significantly contributed to the rise of Nvidia shares this year, plays a crucial role in Arm’s growth strategy.
Additionally, Arm is hopeful that some of its other partners, including Intel (INTC), may also participate in the IPO by acquiring stakes, according to the publication.
