NVIDIA, three major companies support the acquisition of ARM

NVIDIA, three major companies support the acquisition of ARM


Broadcom, MediaTek, and Marvell have reportedly given their approval for NVIDIA's $ 40 billion acquisition of ARM, while regulators around the world are considering the effect it could have on. global electronics industry. High-profile ARM licensees like Google, Microsoft, and Qualcomm have publicly opposed NVIDIA's proposed takeover of the company, and it wouldn't be surprising if others complained about the deal in secret.

reported some time ago, UK regulators expressed concern about the acquisition of ARM. Apparently, the European Commission and the FTC have also contacted NVIDIA regarding the deal, although their approval has not been formally requested. These concerns, coupled with a late request for approval from Chinese entities, risk delaying any verdict.

But now it appears NVIDIA has some allies. The Sunday Times reported that ARM licensees Broadcom, MediaTek and Marvell have lent their support to NVIDIA as UK regulators prepare to make a decision on the proposed acquisition.

The companies do not seem to have been particularly explicit about their support, however even the support, although not publicly present on their respective web pages, could prove invaluable for the Californian company. The UK Competition and Markets Authority has until July 31 to prepare a report on the potential impact on national security and competition of NVIDIA's acquisition of ARM. The British Secretary of State will use this report to inform the company on the decision taken in this regard.

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Could This Be a Big Risk for NVIDIA Stock?

In today's video I look at recent news for NVIDIA (NASDAQ:NVDA). The stock price is reaching new highs, but could this be increasing the risk for stockholders? Below I share a few highlights from the video. 

  • It was recently reported that Broadcom (NASDAQ:AVGO), Marvell (NASDAQ:MRVL), and MediaTek (OTC:MDTKF) are backing the NVIDIA acquisition of Arm. Each company has its reasons for supporting the acquisition. Still, the widespread consensus is that this acquisition will help accelerate innovation and adoption of the Arm-based technology, which can fuel the growth of numerous companies.
  • The excitement of the upcoming stock split and the backing for the Arm acquisition by major semiconductor companies has fueled the stock price to reach new levels. Now NVIDIA could risk seeing a downturn in stock if any negative news comes out toward the acquisition.
  • Long-term investors should remember stock prices go up and down. Trying to time the market can lead to missed opportunities.
  • Click the video below for my full thoughts and analysis. 

    *Stock prices used were the closed prices of June 28, 2021. The video was published on June 28, 2021. 

    This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.