Why Qualcomm Can't Afford to Let NVIDIA Acquire Arm
Qualcomm (NASDAQ: QCOM) is prodding regulators across the world to block NVIDIA's (NASDAQ: NVDA) $40 billion acquisition of the U.K. chip designer Arm Holdings, according to reports from Bloomberg and CNBC.
Qualcomm's opposition to the deal might seem puzzling at first since the two companies sell different types of chips. Qualcomm is the world's largest manufacturer of mobile chipsets for smartphones, while NVIDIA generates most its revenue from GPUs for PC gaming and data centers.
However, a closer look at the relationships between Qualcomm, Arm, and NVIDIA exposes a serious weakness for Qualcomm -- and tells us why it can't afford to let NVIDIA purchase ARM from SoftBank (OTC: SFTB.Y).
Source Fool.com
