NVIDIA Huang Renxun: even if the acquisition of arm is not successful, we are full of confidence in the development prospects of the company

0
37

Tencent technology news according to foreign media reports, NVIDIA CEO Huang Renxun told the media on Thursday that he is full of confidence in the company’s development prospects even if the company’s potential acquisition of British chip design company arm fails.
When asked what investors should think of NVIDIA’s long-term performance when the $40 billion acquisition of arm, a subsidiary of Softbank, is pending, Huang Renxun said: “in any case, NVIDIA will be bigger and stronger.”
It is reported that many technology companies, including California based chipmaker Qualcomm and Microsoft, have told the Federal Trade Commission (FTC) that they are worried that the NVIDIA arm deal may damage competition. Earlier this month, media reported that FTC, the US antitrust regulator, had launched an “in-depth investigation” into the acquisition.
NVIDIA, known for its game graphics chips, first announced the deal in September 2020. Shortly after the announcement, a well-known stock commentator said that if NVIDIA can complete the acquisition of arm, even after its brilliant years, its stock will rise unstoppably
NVIDIA’s share price has risen 103% in the past 12 months, compared with a 22.4% rise in the standard & Poor’s 500 index. Intel’s share price has risen nearly 1600% in the past five years.
NVIDIA’s chips are still at the heart of many disruptive technologies, which will be able to protect its long-term development, Mr Huang said on Thursday. The day before, the company reported quarterly sales of $5bn, up 61% from a year earlier. Both revenue and profit exceeded Wall Street’s expectations.
Mr. Huang founded NVIDIA, based in California, in 1993. He argued: “growth opportunities in the fields of artificial intelligence, self driving cars, manufacturing, industrial robots, 5G Edge and so on are in front of us. These applications will make us a very large company. I think our growth trajectory is very exciting. We expect this year to be a year of huge growth in data centers, all independent of arm. ”
At the same time, Huang also tried to defend NVIDIA’s desire to buy arm, which is known for its chip architecture used in most mobile phones in the world.
“We will be able to inject such an exciting and huge engineering scale into arm to speed up their roadmap, which the ecosystem will like,” he said He added, “we will close the deal. I’m very confident about that. ”
Last year, NVIDIA completed a $7 billion acquisition of chip maker mellanox technologies. The deal took more than 13 months to complete.
NVIDIA shares closed down more than 8% on Thursday. It turns out that as investors liquidate rising stock returns, the share prices of many technology companies begin to fall sharply. (Tencent technology reviser / Lexue)