NVIDIA to Acquire Softbank's Arm Limited: 3 Investing Takeaways

NVIDIA's (NASDAQ: NVDA) proposed acquisition of SoftBank Group's subsidiary Arm Limited for up to $40 billion in cash and stock will have a major impact on the semiconductor industry. Here are three things for investors to note.

Over the last several years, NVIDIA has been growing its data center business. It adapted its graphics processing unit (GPU) technology to enhance the performance of servers' central processing units (CPUs) and with its recent acquisition of Mellanox, it expanded its footprint with networking capabilities. As a result, during its fiscal quarter ended in late July, revenue from its data centers segment reached $1.75 billion, which represented 45% of total revenue, up from 25% in the prior-year quarter.

By acquiring Arm, NVIDIA aims to complement its data center offering by integrating its GPU and artificial intelligence (AI) technologies with Arm's CPU designs. "Uniting NVIDIA's AI computing capabilities with the vast ecosystem of Arm's CPU, we can advance computing from the cloud, smartphones, PCs, self-driving cars and robotics, to edge IoT, and expand AI computing to every corner of the globe," NVIDIA CEO Jensen Huang was quoted as saying in a press release.

Source Fool.com