August 19, 2021
Nvidia Corp on Wednesday revealed that talks with regulators to push through its $40 billion takeover of British semiconductor technology company Arm Ltd are taking longer than expected.
The announcement came as Nvidia, the world’s largest maker of graphics chips for gamers and chips for artificial intelligence for data centers, forecast third-quarter revenue above Wall Street expectations as its sales were boosted by a surge in demand.
But investor focus remains on whether Nvidia’s goal of acquiring Arm will withstand regulatory scrutiny and close by March 2022, as originally stated by Nvidia. Arm has long been a neutral technology provider across the chip industry, and Nvidia competitors such as Qualcomm Inc have objected to a competitor’s acquisition of Arm.
Nvidia Chief Financial Officer Colette Kress said in a statement that the company remains confident that the deal will be implemented.
Nvidia shares fell 2% but rose later when executives in a conference call with analysts predicted higher sales prices for gaming chips.
The company forecast revenue of $6.80 billion for the current quarter, up or down 2% from analysts’ expectations of $6.53 billion based on IBES data from Refinitiv.
Nvidia also beat second-quarter revenue forecasts, rising 68% to $6.51 billion. Data center and gaming revenues were $2.37 billion and $3.06 billion, respectively, above analyst estimates of $2.3 billion and $2.94 billion, according to Refinitiv data.
The chip giant said second-quarter adjusted earnings were $1.04 per share, compared with previous forecasts of $1.01 per share, according to Refinitiv data.
For more information, read the original story in Reuters.
