Not just the UK government. Also the US, the EU and China. So lots of hurdles to take. And they all seem more averse to monopolies these days.
No Iām suggesting the opposite, that these nations are all desperate to facilitate monopolies to accumulate power.
The UK does not want to lose itās one major shot at the new AI game. I wouldnāt be surprised if the UK denied the sale and bought ARM instead.
I agree that this is certainly a possibility, I hope it doesnāt happen though.
I think the decision with OneWeb was controversial enough, although this would be a very different deal it still starts to a look like a worrying trend.
I understood but I think they will keep ARM in the UK.
Yes but again it is very hard to enforce that. Washingtonās reach will now extend to ARM and, as we have seen, Washington does not like to relinquish control.
2 Likes
I donāt see why the UK government shouldnāt be more interventionist. The US and Chinese governments both are and I think there is much to be learned. The UK has top universities but companies are often bought up early and cannibalised.
Iām fine with them intervening in other ways (e.g. blocking deals if necessary), Iām less fine with state-ownership. I just think itās very problematic, it risks stifling growth of successful companies and leaves the tax-base footing the bill for non-successful ones.
1 Like
Have a look mate
āMightā and āaskā being the operative words here. How many times has the UK govt. asked for jobs to be kept in the UK and then sat by powerless when the companies concerned reneged on the deal.
This takeover should definitely be stopped.
1 Like
The agreement in the right way to be approved.
2 Likes
The most innovative company in my opinion.
AMD also jumped 5% today so it seems like this is more likely general semi / logic design uptick than anything specific.
Iām not sure on Nvidia as I think theyāve made a costly mistake not securing TSMC wafers and having to fall back on Samsung. Iād like to take a position but Iāll probably wait a bit, I think RDNA 2 could make things a bit rocky for Nvidia.
2 Likes
You are late 
As a potential new investor in NVDA, can someone just talk me through the benefits of the NVDA + ARM acquisition? Iāve done a fair bit of reading, but would love to hear the thoughts of the community on this too.
Thanks in advance!
There is a big trend away from CISC to RISC even in conventional computers and datacentres. How far this will go is up to debate, but for now itās got a lot of momentum (Macbooks going to ARM, Microsoft ARM emulation, more ARM instances in datacentres). From this perspective ARM seems to be in a great place.
Ultimately it seems that logic design is going to be dominated by Nvidia, AMD, Intel and ARMās customers. While logic foundries will be split between TSMC and Samsung (perhaps also Intel).
While Nvidia is leading in GPU it lacks on the CPU side (compared to AMD, Intel which offer both) so taking on ARM would be a natural way to get into the CPU space. Nvidia will have more control over the CPU space if they successfully acquire ARM, they will have control over the instruction set and could use this to their advantage. It also fits with their general plan of having all-things logic (particularly AI).
If Nvidia does mishandle ARM as well as risking regulatory backlash it could push increased adoption of the open RISC-V standard. Itās one thing to pay licensing fees and have over to control to the relatively neutral ARM but rival companies may not want to be beholden to a competitor (Nvidia).
I donāt love the acquisition, Iād probably invest in an Arm IPO but Iām not sure it has the same value here.
Tangent
I donāt love Nvidia at this price, CUDA is basically the moat for Nvidia but itās having to do a lot of heavy lifting to support the market cap right now and Iām not sure it can last forever.
(Iām long TSMC-AMD so Iām certainly biased against Samsung-Nvidia at the moment)
3 Likes
Nvidia is the darling of wall street.
Some thoughts from a ARK analyst about the deal.
How is Nvidiaās AR chip coming along?
Hello friends 
Todayās Invest Hub insight takes a look at Nvidiaās future prospects based on their latest set of financial results. The short version is, things look good but thereās a couple of potential roadblocks. Also be forewarned that I couldnāt squeeze in much on the RISC vs CISC battle here, so donāt be mad if thatās your shtick 
Remember to sign up for Market Snapshots for daily market insights too!
David
2 Likes