Nvidia (NVDA) 💻 - Share Chat

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 I’m suggesting the opposite, that these nations are all desperate to facilitate monopolies to accumulate power.

The UK does not want to lose it’s one major shot at the new AI game. I wouldn’t be surprised if the UK denied the sale and bought ARM instead.

I agree that this is certainly a possibility, I hope it doesn’t 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. Washington’s reach will now extend to ARM and, as we have seen, Washington does not like to relinquish control.

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I don’t see why the UK government shouldn’t 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.

I’m fine with them intervening in other ways (e.g. blocking deals if necessary), I’m less fine with state-ownership. I just think it’s very problematic, it risks stifling growth of successful companies and leaves the tax-base footing the bill for non-successful ones.

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Have a look mate

“Might” and “ask” 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.

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The agreement in the right way to be approved.

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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.

I’m not sure on Nvidia as I think they’ve made a costly mistake not securing TSMC wafers and having to fall back on Samsung. I’d like to take a position but I’ll probably wait a bit, I think RDNA 2 could make things a bit rocky for Nvidia.

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You are late :joy:

Most likely sleeping

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As a potential new investor in NVDA, can someone just talk me through the benefits of the NVDA + ARM acquisition? I’ve 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 it’s 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 ARM’s 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. It’s 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 don’t love the acquisition, I’d probably invest in an Arm IPO but I’m not sure it has the same value here.

Tangent

I don’t love Nvidia at this price, CUDA is basically the moat for Nvidia but it’s having to do a lot of heavy lifting to support the market cap right now and I’m not sure it can last forever.

https://towardsdatascience.com/on-the-state-of-deep-learning-outside-of-cudas-walled-garden-d88c8bbb4342

(I’m long TSMC-AMD so I’m certainly biased against Samsung-Nvidia at the moment)

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Nvidia is the darling of wall street.

Some thoughts from a ARK analyst about the deal.