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Nvidia offered to buy Arm in 2020 but abandoned the bid when it was challenged by regulators.
Photograph by Justin Sullivan/Getty Images
Arm, the U.K. chip maker bought by Japan’s
SoftBank
in 2016, may draw an investment from
Nvidia
in its initial public offering.
Nvidia
(ticker: NVDA), the first semiconductor firm to reach a $1 trillion valuation, and Intel (INTC) may come forward as anchor investors for a New York IPO as soon as September, the Financial Times reported, citing unidentified people familiar with the talks. Nvidia and Arm declined to comment when contacted by Barron’s.
Prospective investors are negotiating over Arm’s value. Nvidia is arguing that it should be $35 billion to $40 billion, while Arm sees it closer to $80 billion, the FT said. Nvidia offered to buy Arm for $66 billion in 2020 but abandoned the bid last year when it was challenged by regulators.
Nvidia shares were trading up 0.4% in premarket trading. SoftBank shares closed 2% higher in Japan on Tuesday.
SoftBank bought Arm for $32 billion in 2016. Nvidia and
Apple
are among Arm’s customers. Artificial intelligence, which has helped lift Nvidia shares this year, is central to Arm’s growth plans, the FT reported.
Arm is hoping that some of its other partners, including
Intel
(INTC), may also take stakes in the IPO, the paper said.
Write to Brian Swint at brian.swint@barrons.com
