NVIDIA Does Not Expect Arm Acquisition to Close — Report

Multinational technology company NVIDIA Corp. (NASDAQ: NVDA) does not expect its purchase of U.K.-based Arm Ltd. to close, Bloomberg said citing people familiar with the matter.

NVIDIA is looking to acquire the Cambridge-based semiconductor and software design company from SoftBank Group Corp. for $40 billion but has hardly made any progress in getting regulatory approval.

The acquisition, which was announced in September 2020, has faced severe opposition from regulators and the chip industry. The U.S. Federal Trade Commission has sued NVIDIA and said the deal will make the company too powerful.

NVIDIA spokesman Bob Sherbin said, “We continue to hold the views expressed in detail in our latest regulatory filings – that this transaction provides an opportunity to accelerate Arm and boost competition and innovation.”

NVIDIA to Supply GPUs to Meta

Separately, Meta Platforms, Inc. (NASDAQ: FB) is building the world’s fastest AI supercomputer, which will use 16,000 A100 GPUs of NVIDIA.

Called Research SuperCluster (RSC), the supercomputer will feature 2,000 NVIDIA DGX A100 systems, each of which contains eight A100 GPUs.

NVIDIA said, once fully deployed, the RSC will be the “largest customer installation of NVIDIA DGX A100 systems.”

About NVIDIA

Based out of California, NVIDIA designs and manufactures computer graphics processing units (GPUs), chipsets, and related multimedia software.

NVDA stock was trading 4.1% down in the pre-market session on Tuesday, at the time of writing.

Wall Street’s Take

Last week, UBS (NYSE: UBS) analyst Timothy Arcuri reiterated a Buy rating on the stock with a price target of $350 (50% upside potential).

After Arcuri discussed NVIDIA’s Omniverse opportunity with industry experts and the company’s partners and customers, he, in a note to investors, said, “We conclude that Omniverse is in some ways similar to CUDA as a platform to reduce friction and ultimately drive market expansion for NVDA’s hardware solutions; for the virtual world, it is in some ways similar to the first browsers from the mid-1990’s for a fledgling Internet.”

“Ultimately Omniverse could potentially open the next ~$100 billion+ in TAM for the company as the 3D/virtual work takes shape,” Arcuri added.

Overall, the stock has a Strong Buy consensus rating based on 23 Buys and 2 Holds. The average NVDA price target of $359.17 implies 53.7% upside potential. Shares have gained 74.1% over the past year.

Website Traffic

TipRanks’ Website Traffic Tool, which uses data from SEMrush Holdings (NYSE: SEMR), the world’s biggest website usage monitoring service, offers insight into NVIDIA’s performance.

According to the tool, compared to the previous year, NVIDIA’s website traffic registered a 98.5% decline in global visits in December. However, the website traffic has increased a whopping 10,007.6% year-to-date against the same period last year.

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