Nvidia Aims To Take On Intel AMD In Servers With This Purchase

Today, few time ago a another amazing video entitled Nvidia Aims To Take On Intel AMD In Servers With This Purchase was uploaded by: Fact News

As written in the video description by Fact News: Nvidia’s (NVDA) planned purchase of chip designer Arm will allow the maker of graphics processing units to move deeper into data centers with central processing units for servers. The move would challenge Intel (INTC) and Advanced Micro Devices (AMD) in the market for server CPUs, analysts say. Nvidia stock rose on the news Monday. XSanta Clara, Calif.-based Nvidia on Sunday announced an agreement to buy U. K.-based Arm from Japan’s SoftBank (SFTBY) for up to $40 billion in cash and stock. Nvidia will pay SoftBank $21.5 billion in Nvidia common stock and $12 billion in cash. It also will issue $1.5 billion in equity to Arm employees. Plus, SoftBank may receive up to $5 billion in cash or common stock via earn-outs, depending on Arm reaching certain financial performance targets. Nvidia hopes to complete the purchase in 18 months. However, the acquisition likely will face major regulatory hurdles, Wall Street analysts say. The deal will require regulatory approval from the U. S., U. K., European Union and China.”Our combination will create a company fabulously positioned for the age of AI,” Nvidia Chief Executive Jensen Huang said in a written statement. ”Uniting Nvidia’s AI (artificial intelligence) computing capabilities with the vast ecosystem of Arm’s CPU, we can advance computing from the cloud, smartphones, PCs, self-driving cars and robotics, to edge IoT (Internet of Things), and expand AI computing to every corner of the globe.”Deal Would Expand Nvidia’s Reach In Data CentersNvidia pledged to continue Arm’s open-licensing model and customer neutrality. A host of fabless chipmakers use Arm chip technology including Apple (AAPL), Broadcom (AVGO), Qualcomm (QCOM) and more. Arm would complement Nvidia’s existing GPU and data center networking businesses, Susquehanna analyst Christopher Rolland said in a report to clients. It would extend Nvidia’s reach into the CPU ecosystem and expand its influence in the data center market, he said. Rolland rates Nvidia stock as positive with a price target of 560. Nvidia Stock Jumps On Arm Acquisition NewsIn morning trading on the stock market today, Nvidia stock jumped 8.2%, near 526.55. Meanwhile, Intel stock rose 0.4%, near 49.50. AMD stock climbed 2.5%, near 78.20. Nvidia’s purchase of Arm could create more competition in the server market. With Nvidia’s backing, Arm ”could challenge the stranglehold x86 CPUs have on the data center today,” Truist Securities analyst William Stein said in a note to clients. Intel has about 85% to 90% of the market for x86 servers. AMD has about 8% to 10% of the market. However, Nvidia could have pursued such a strategy by licensing Arm technology rather than buying the company, Stein said. Stein rates Nvidia stock as buy with a price target of 550. Arm Purchase Seen As ‘Assault’ On Intel’s Server BusinessNvidia’s purchase of Arm would be ”an assault on Intel’s server CPU business,” Raymond James analyst Chris Caso said in a report.\n\nAll data is taken from the source: http://investors.com\nArticle Link: https://www.investors.com/news/technology/nvidia-stock-rises-deal-to-buy-arm/\n\n#Nvidiastock #newscnn #newsworldtoday #newsworldbbc #newsworldnow #newstoday #newstodayoncnn

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