Why NVIDIA Stock Jumped Today
Shares of NVIDIA (NASDAQ: NVDA) climbed on Monday after the chipmaker said it would acquire UK-based chip designer Arm Limited from Japanese conglomerate SoftBank (OTC: SFTBF). By the close of trading, Nvidia's stock was up 5.8% after rising as much as 9.5% earlier in the day.
NVIDIA will pay SoftBank as much as $40 billion, including $21.5 billion in stock, $12 billion in cash, $5 billion in performance-based earnouts, and $1.5 billion in equity to Arm employees.
In return, NVIDIA will obtain control over Arm's technology, which powers billions of mobile devices made by companies such as Apple, Samsung,and Microsoft. Combining Arm's vast device ecosystem with NVIDIA's leading graphics processing and artificial intelligence capabilities would create a technological titan in the global computing industry.
Source Fool.com
