Shares of chipmaker NVIDIA (NASDAQ: NVDA) were up on Monday after competitor Broadcom (NASDAQ: AVGO) came out in support of the company's proposed acquisition of U.K. chip designer Arm. NVIDIA also announced a new partnership with Alphabet's (NASDAQ: GOOG)(NASDAQ: GOOGL) Google to create an artificial intelligence (AI) and 5G innovation hub. Shares were up by about 5% as of 11:48 a.m. EDT today.
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NVIDIA's proposed acquisition of Arm spooked some of its chipmaking competitors, as the companies were worried that NVIDIA could use monopolistic tactics by restricting the use of Arm's technology or raising its prices to unsustainable levels. However, in a recent statement, Broadcom CEO Hock Tan came out in support of the Arm deal, saying that NVIDIA has assured the chip industry that it will invest in Arm's technology and keep it open for all companies to use. While the acquisition still hasn't gone through, this statement was likely well received by investors.
Source Fool.com