Latest news: Carlyle and Metro Bank end buyout negotiations


Nvidia said on Wednesday that it still believes its planned acquisition of Arm will benefit customers of the UK chip design company and the industry as a whole, just a day after the UK launched a national security investigation into the agreement.

The US chipmaker’s remarks came before a call with Wall Street analysts on Wednesday night to discuss its quarterly earnings.

The latest figures showed that Nvidia’s gaming chip and data center business continued to thrive, increasing its revenue by 50% in the third quarter and causing its shares to rebound 4% after the market.

Shares of Nvidia have jumped about 130% in the 14 months since the announcement of the proposed deal with Arm, bringing its market value to more than $ 730 billion.

The advance was driven by strong demand for gaming and cloud computing services during the pandemic, with third-quarter revenue reaching $ 7.1 billion, $ 270 million ahead of Wall Street expectations.

Nvidia also forecast fourth-quarter revenue of $ 7.4 billion, $ 540 million above expectations as it managed to remove the worst pressures from the chip supply chain that have hit other parts of the area.

The latest British investigation, along with concerns that Nvidia said had been raised by the Federal Trade Commission in the United States, have undermined the company’s hopes of finalizing the Arm acquisition by next March.

The company said a formal antitrust process had not yet started in China, although the acquisition was unveiled 14 months ago, although it said the deal had been “pending. review â€by the authorities of that country.

Nvidia’s after-tax profits soared 84% in the most recent period to $ 2.46 billion, or 97 cents per share. On a pro forma basis, Wall Street estimates the company earnings per share climbed to $ 1.17, 6 cents above expectations.


Comments are closed.