Nvidia extends rally as optimism over Arm deal rises

By Yukta Samvedi On June 18, 2021 1:28 PM

Nvidia Corporation, an American multinational technology company that designs graphics processing units for the gaming and professional markets saw a substantial rise in its shares for a third straight session on Friday. The Santa Clara headquartered chip maker for the mobile computing and automotive market also hit an intraday record as optimism for approval of its upcoming proposed acquisition of Arm Ltd., a British software design company that recently grew.

The stock rose as much as 3.9%, not only that the company has advanced very well this month with the stock is up more than 17% putting it on track for its biggest one-month gain since August. Not only that, the computer systems company has risen almost 50% this year, making it the second-best performer among SOX components, behind Applied Materials.

Nvidia’s Chief Executive Officer Jensen Huang says that he remains confident that regulators will approve the company’s acquisition of Arm from Japan’s Softbank Group Corp- the optimism regarding the acquisition rose when Huang and Arm CEO Simon Segars spoke at the Six-Five Summit on Thursday.

“If Nvidia’s aim was to use a public forum to showcase what a combination with Arm would mean for the broader ecosystem, along with allaying fears about Arm losing its independence, then the company went a long way in accomplishing that by having both the CEOs jointly take questions,” wrote BMO Capital Markets analyst Ambrish Srivastava.

The industry’s benchmark index is up about 14% in 2021.