Nvidia considering anchor investor role for Arm - reports
Having one or more primary investors prior to its upcoming listing in New York would serve as a means of bolstering Arm's shares, while its parent organization, SoftBank, which acquired Arm for £24 billion ($32 billion) in 2016, decreases its ownership.
As per insider sources mentioned by the Financial Times, Nvidia expressed their desire to set a share price that would increase Arm's total worth to about $35-40 billion. However, Arm aims for a value closer to $80 billion.
Arm is seeking investment from various existing partners as it moves towards its planned IPO in September.
Another possible ally is Intel, who are in ongoing discussions with the semiconductor manufacturer regarding its worth.
Having one or multiple cornerstone investors prior to its debut on the New York stock market would provide a boost to Arm's shares, as its owner, SoftBank, who acquired Arm for £24bn ($32bn) in 2016, reduces its ownership.
However, a different source mentioned that the discussions have not been finalized and there's a possibility that they might not result in any investment either.
There's no need to hurry and seek AI exposure - chances are, you already possess it.
This follows after Nvidia had to drop its initiative to acquire Arm last year due to regulatory opposition against the deal, valued at $66 billion (£58 billion).
Regulatory bodies in the United States and Europe have expressed concerns that the agreement could impede competitors' ability to utilize Arm's intellectual assets, a key component present in the majority of smartphones and an increasingly significant segment of the automotive industry.
Even though Arm is located in Cambridge, they made the decision not to have their listing in the UK this year. This action raised worries about whether the tech industry in the UK is appealing for companies to expand.
Making money from Generative AI: What opportunities exist for investors?
Global listing volumes declined in 2022 due to investors being cautious about the decreasing stock prices, rising market instability, and the uncertain economic situation. Nonetheless, there has been a recent upswing in activity.
A lot of people are keeping a close eye on Arm's IPO launch this year. By getting the backing of a handful of key investors before going public, Arm can guarantee interest and provide assurance to prospective investors.
In the month of May in the present year, Nvidia became a part of the esteemed group of companies valued at $1 trillion. This came about as a result of increased investment interest, leading to a remarkable three-fold growth in the company's market worth within a span of less than twelve months.
