Could NVIDIA Buy ARM to Expand Beyond GPUs?

Four years ago, Japanese conglomerate SoftBank (OTC: SFTBY) acquired British chip designer ARM Holdings for $32 billion in a bold expansion into the semiconductor market. But SoftBank is now reportedly mulling an IPO or sale of ARM to raise cash after a streak of poor investments -- including WeWork, Uber, and OneWeb -- crushed its profits.

One of those potential suitors is reportedly NVIDIA (NASDAQ: NVDA), according to Bloomberg, and a takeover could strengthen the chipmaker's business and give it new ways to challenge AMD (NASDAQ: AMD), Intel (NASDAQ: INTC), Qualcomm (NASDAQ: QCOM), and other rivals.

Investors should always be skeptical about buyout rumors, but the long-term implications of a marriage between NVIDIA and ARM are too great to ignore. Let's see if NVIDIA could pull off this massive deal, and what it could mean for the semiconductor industry.

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Source Fool.com